The Review of Economics and Statistics Vol. 69 No. 1 1987
A Model of Educational Investment Decisions
Abstract
From a probit model of enrollments, estimates of the expected net present value of post secondary education are developed for a sample of high school graduates, based e xclusively on individual expectations of the relevant costs and benefits at the time of the enrollment decision. The results are very plausible and consistent w ith rate-of-return estimates from studies which rely on ex post income data. Thi s suggests that students have rational expectationsand relatively good informat ion about future employment opportunities and other factors which determine the returns to educational investment.
- DOI
- 10.2307/1937898
- Volume
- 69
- Issue
- 1
- Pages
- 33
- Sources
- crossref openalex