Is Earnings Uncertainty Relevant for Educational Choice? An Empirical Analysis for China

Joop Hartog, Xiaohao Ding () and Juan Liao ()
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Xiaohao Ding: Peking University
Juan Liao: Peking University

No 5679, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We use the method of Dominitz and Manski (1996) to solicit anticipated wage distributions for continuing to a Master degree or going to work after completing the Bachelor degree. The means of the distributions have an effect on intention to continue as predicted by theory. The dispersions in these individual distributions have no effect on intention to continue, suggesting that anticipated earnings risk does not play a role in the decision.

Keywords: wage expectations; educational choice (search for similar items in EconPapers)
JEL-codes: D8 I21 J24 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2011-04
New Economics Papers: this item is included in nep-edu and nep-lab
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Citations: View citations in EconPapers (1)

Published - published in: Education Economics, 2014 , 22 (5), 471-483

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