EconPapers    
Economics at your fingertips  
 

Earnings risk and demand for higher education: A cross-section test for Spain

Joop Hartog and Luis Díaz-Serrano ()
Additional contact information
Luis Díaz-Serrano: Universitat Rovira i Virgili, CREB and IZA, http://www.iza.org/index_html?lang=en&mainframe=http%3A//www.iza.org/en/webcontent/personnel/photos/index_html%3Fkey%3D1523&topSelect=personnel&subSelect=fellows

Authors registered in the RePEc Author Service: Luis Diaz-Serrano ()

Journal of Applied Economics, 2007, vol. 10, 1-28

Abstract: We develop a simple human capital model for optimum schooling length when earnings are stochastic, and highlight the pivotal role of risk attitudes and the schooling gradient of earnings risk. We use Spanish data to document the gradient and to estimate individual response to earnings risk in deciding on attending university education, by measuring risk as the residual variance in regional earnings functions. We find that the basic response is negative but that in households with lower risk aversion, the response will be dampened substantially and may even be reversed to positive.

Keywords: earnings risk; schooling decisions (search for similar items in EconPapers)
JEL-codes: I21 (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (28) Track citations by RSS feed

Downloads: (external link)
https://ucema.edu.ar/publicaciones/download/volume10/hartog.pdf (application/pdf)

Related works:
Working Paper: EARNINGS RISK AND DEMAND FOR HIGHER EDUCATION: A CROSS-SECTION TEST FOR SPAIN (2004) Downloads
Working Paper: Earnings Risk and Demand for Higher Education: A Cross-Section Test for Spain (2002) Downloads
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:cem:jaecon:v:10:y:2007:n:1:p:1-28

Access Statistics for this article

Journal of Applied Economics is currently edited by Germán Coloma and Mariana Conte Grand and Jorge M. Streb

More articles in Journal of Applied Economics from Universidad del CEMA Contact information at EDIRC.
Bibliographic data for series maintained by Valeria Dowding ().

 
Page updated 2021-01-17
Handle: RePEc:cem:jaecon:v:10:y:2007:n:1:p:1-28