The Expected (Signaling) Value of Higher Education

Laura Ehrmantraut (), Pia Pinger and Renske Stans
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Laura Ehrmantraut: University of Bonn, Institute for Applied Microeconomics

No 32, ECONtribute Discussion Papers Series from University of Bonn and University of Cologne, Germany

Abstract: This paper explores students' expectations about the returns to completing higher education and provides first evidence on \textit{perceived} signaling and human capital effects. We elicit counterfactual labor market expectations for the hypothetical scenarios of leaving university with or without a degree certificate among a large and diverse sample of students at different stages of higher education. Our findings indicate substantial perceived returns to higher education. Moreover, by exploiting within-individual variation, we document sizeable expected labor market returns from signaling, whereas perceived productivity-enhancing (human capital) returns seem to be less pronounced. Over the expected course of career, we find lasting education premia as well as evidence consistent with employer learning.

Keywords: higher education; returns to education; signaling; educational attainment; licensing; employer learning (search for similar items in EconPapers)
JEL-codes: I21 I23 I26 J24 J31 J32 J44 (search for similar items in EconPapers)
Pages: 62 pages
Date: 2020-09
New Economics Papers: this item is included in nep-hrm and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_032_2020.pdf First version, 2020 (application/pdf)

Related works:
Working Paper: The Expected (Signaling) Value of Higher Education (2020)
Working Paper: The Expected (Signaling) Value of Higher Education (2020)
Working Paper: The Expected (Signaling) Value of Higher Education (2020)
Working Paper: The Expected (Signaling) Value of Higher Education (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ajk:ajkdps:032

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