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Misinformed, mismatched, or misled?: Explaining the gap between expected and realized graduate earnings in Mozambique

Sam Jones, Ricardo Santos and Gimelgo Xirinda

No wp-2020-47, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Inaccurate expectations of future wages are found in many contexts. Yet, existing studies overwhelmingly refer to high-income countries, and there is little evidence regarding the sources of expectational errors. Based on a longitudinal survey of graduates from the six largest universities in Mozambique, we find the gap between expected and realized first earnings are extremely large. Applying a novel decomposition procedure, we find these errors are not driven by incorrect information about labour market returns.

Keywords: job mismatch; Mozambique; optimism; tracer study; wage expectation; Wages (search for similar items in EconPapers)
Date: 2020
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