Educational Choice, Initial Wage and Wage Growth

Jacopo Mazza and Hans van Ophem
Additional contact information
Hans van Ophem: University of Amsterdam

No 20-030/III, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: We investigate the major choice of college graduates where we make choice dependent on expected initial wages and expected wage growth per major. We build a model that allows us to estimate these factors semiparametrically and that corrects for selection bias. We estimate the model on the combined NLSY79 and NLSY97 samples. We find markedly different results in expected real wage growth and expected initial wages across majors. Furthermore, the dierences in these expectations appear to be relevant for major choice.

Keywords: Wage inequality; Wage uncertainty; Unobserved heterogeneity; Selection bias; Decision-making under Risk and Uncertainty; Semiparametric estimation (search for similar items in EconPapers)
JEL-codes: C14 C34 D81 J31 (search for similar items in EconPapers)
Date: 2020-06-11
New Economics Papers: this item is included in nep-edu and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://papers.tinbergen.nl/20030.pdf (application/pdf)

Related works:
Journal Article: Educational choice, initial wage and wage growth (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20200030

Access Statistics for this paper

More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().