Educational Choice, Initial Wage and Wage Growth

Open Access
Authors
Publication date 2020
Series Tinbergen Institute Discussion Paper, TI 2020-030/III
Number of pages 40
Publisher Amsterdam: Tinbergen Institute
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
  • Faculty of Economics and Business (FEB)
Abstract 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 differences in these expectations appear to be relevant for major choice.
Document type Working paper
Language English
Related publication Educational choice, initial wage and wage growth
Published at https://doi.org/10.2139/ssrn.3624745
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SSRN-id3624745 (Final published version)
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