1. Differences in Post-Graduation Earnings and College Completion: the Case of Students from Appalachia
- Author
-
Garrett, Daniel G.
- Subjects
- Economics, Higher Education, Returns to Higher Education, College Completion
- Abstract
An individual who views higher education as an investment will likely take future earnings into account when he or she makes the decision to complete a college degree. Students do not necessarily know exactly what they will earn after college, but they will use their own best estimates to make education related decisions. This study seeks to test if students use regional specific information about post-graduation earnings to make the decision to complete a college degree. The study examines college completion of students from Appalachia where an additional year of education is not compensated as well as it is in the rest of the United States. Post-graduation earnings are compared and students from Appalachia earn less than students from another part of the U.S. on average after correcting for observable differences, but the lower earnings do not cause Appalachian students to have less incentive to graduate. Appalachian students have a higher chance of graduating from college than students elsewhere, which raises questions about differing individual preferences and individual expectations forming.
- Published
- 2014