Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227256 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13729
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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, 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.
Subjects: 
signaling
returns to education
higher education
educational attainment
licensing
JEL: 
I21
I23
I26
J24
J31
J32
J44
Document Type: 
Working Paper

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