- (Non-)graduation and the earnings function: An inquiry on self-selection
- European Economic Review
- Volume | Issue number
- 33 | 7
- Number of pages
- Document type
- Faculty of Economics and Business (FEB)
- Amsterdam School of Economics Research Institute (ASE-RI)
The authors model schooling careers in the Dutch educational systems (including the decision to drop out) as a discrete sequential choice, in which expected earnings play an important role. Selectivity bias from correlation between the errors in the decision function and the earnings function appears empirically relevant and they correct for it by applying a proper maximum likelihood estimation procedure. The results indicate that drop-outs behave differently from graduates. In the decision functions on schooling careers, expected earnings (based on estimated earnings functions in mid-career) are never significant. Yet, the educational choices appear ex post consistent with choices according to comparative (earnings) advantage.
- go to publisher's site
If you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the material inaccessible and/or remove it from the website. Please Ask the Library, or send a letter to: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands. You will be contacted as soon as possible.