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Status Concerns and the Schooling Decision

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  • Schottke, Alessa Kristin
  • Siemering, Christian

Abstract

We investigate the influence of status concerns on educational attainment and the labor market. Status is considered as the relative position in society, positively differentiated by comparison with others. We find that the perception of higher social status coming along with higher education may increase the demand for educational credentials. In turn, we can observe a positive effect on labor supply of higher educated people, affecting their wage rate in a negative way. Moreover, the wage for less educated people increases after the introduction of social status due to the low employment rate.

Suggested Citation

  • Schottke, Alessa Kristin & Siemering, Christian, 2016. "Status Concerns and the Schooling Decision," VfS Annual Conference 2016 (Augsburg): Demographic Change 145908, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145908
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    References listed on IDEAS

    as
    1. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
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    3. H. Leibenstein, 1950. "Bandwagon, Snob, and Veblen Effects in the Theory of Consumers' Demand," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 64(2), pages 183-207.
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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