The expected (signaling) value of higher education

Arbeitspapier

This paper explores students' expectations about the returns to completing higher education and provides first evidence on \textit{perceived} signaling and human capital effects. We elicit counterfactual labor market expectations for the hypothetical scenarios of leaving university with or without a degree certificate among a large and diverse sample of students at different stages of higher education. Our findings indicate substantial perceived returns to higher education. Moreover, by exploiting within-individual variation, we document sizeable expected labor market returns from signaling, whereas perceived productivity-enhancing (human capital) returns seem to be less pronounced. Over the expected course of career, we find lasting education premia as well as evidence consistent with employer learning.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECONtribute Discussion Paper ; No. 032

Classification and Topics

• Classification: Wirtschaft ; Analysis of Education ; Higher Education; Research Institutions ; Returns to Education ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Wage Level and Structure; Wage Differentials ; Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions ; Professional Labor Markets; Occupational Licensing
• Subject: higher education ; returns to education ; signaling ; educational attainment ; licensing ; employer learning

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ehrmantraut, Laura ; Pinger, Pia ; Stans, Renske
• Event: Veröffentlichung
• (who): University of Bonn and University of Cologne, Reinhard Selten Institute (RSI)
• (where): Bonn and Cologne
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/225544
• Last update: 10.03.2025, 11:43 AM CET