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 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, using within-individual fixed effects models, we document substantial 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: CESifo Working Paper ; No. 8589

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): Center for Economic Studies and Ifo Institute (CESifo)
• (where): Munich
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/226291
• Last update: 10.03.2025, 11:42 AM CET