1. Choosing the Field of Study in Post-Secondary Education: Do Expected Earnings Matter?
- Author
-
Beffy, Magali, Fougère, Denis, and Maurel, Arnaud
- Subjects
POSTSECONDARY education ,COLLEGE majors ,ALGORITHMS ,LABOR market ,BUSINESS cycles ,PARAMETER estimation ,UTILITY functions ,ECONOMETRIC models ,WAGES ,STOCHASTIC processes ,MATHEMATICAL models - Abstract
This paper examines the determinants of the choice of the college major when the length of studies and future earnings are uncertain. We estimate a three-stage schooling decision model, focusing on the effect of expected earnings on major choice. We control for dynamic selection through the use of mixture distributions. Exploiting variations across the French business cycle in the relative returns to the majors, our results yield a very low, though significant, elasticity of major choice to expected earnings. This suggests that, at least for the French university context, non-pecuniary factors are a key determinant of schooling choices. [ABSTRACT FROM AUTHOR]
- Published
- 2012
- Full Text
- View/download PDF