Labor Seminars Amsterdam

Teodora Boneva (UCL London, United Kingdom)
Tuesday, 18 September 2018

Socio-Economic Gaps in University Enrollment: The Role of Perceived and Non-Pecuniary Returns

To understand the socio-economic enrollment gap in university attendance, we elicit students’ beliefs about the benefits of university education in a sample of 2,540 secondary school students. Our choice model estimates reveal that perceived non-pecuniary benefits explain a large share of the variation in intentions to enroll. Expected job satisfaction, parental approval, and perceptions about social life during the 3-4 years after finishing secondary school are most important. Students with low-economic status perceive pecuniary and non-pecuniary returns to be lower. Beliefs explain 48% of the socio-economic gap in intentions to enroll, while perceived non-pecuniary returns alone account for 37%.

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