Educational Choice, Initial Wage and Wage Growth

Arbeitspapier

We investigate the major choice of college graduates where we make choice dependent on expected initial wages and expected wage growth per major. We build a model that allows us to estimate these factors semiparametrically and that corrects for selection bias. We estimate the model on the combined NLSY79 and NLSY97 samples. We find markedly different results in expected real wage growth and expected initial wages across majors. Furthermore, the dierences in these expectations appear to be relevant for major choice.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. TI 2020-030/III

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Semiparametric and Nonparametric Methods: General ; Multiple or Simultaneous Equation Models: Truncated and Censored Models; Switching Regression Models ; Criteria for Decision-Making under Risk and Uncertainty
• Subject: Wage inequality ; Wage uncertainty ; Unobserved heterogeneity ; Selection bias ; Decision-making under Risk and Uncertainty ; Semiparametric estimation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mazza, Jacopo ; van Ophem, Hans
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/220067
• Last update: 10.03.2025, 11:43 AM CET