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Wages and Higher Education Participation

Konstantinos Eleftheriou, George Athanasiou () and Panagiotis Petrakis

MPRA Paper from University Library of Munich, Germany

Abstract: The paper develops a model for the screening mechanism for higher education, within an adverse selection framework. Specifically it examines the effect of wage earned by high school graduates on higher education participation. The model pinpoints a positive relation between the “high school” wage and the number of candidates entered in higher education with positive influences on the quality of selection mechanism. An empirical examination is conducted, using U.S. data, in order to investigate the validity of our analytical results.

Keywords: Admissions; High school wage; Higher education; Quality (search for similar items in EconPapers)
JEL-codes: I28 J24 J39 (search for similar items in EconPapers)
Date: 2009-09-13
New Economics Papers: this item is included in nep-edu and nep-lab
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