Following human capital theory, the investment in education should result in wage gains over time and increased productivity. Thuswise, some governments became more active in stimulating citizens into pursuing advanced degrees by introducing loans and other support schemes. British policy makers went further by first launching graduate loans for…

We estimated the effects of an intervention which provided information about graduate wages to 5593 students in England, using a blinded cluster randomised controlled trial in 50 schools (registration: AEARCTR-0000468). Our primary outcome was students' choice of A-level subjects at age 16. We also recorded the students' expectations of future…

Tailoring education policy to deliver the skills needed by modern labour markets is complicated by the rapid pace of technological change. These complications are amplified when the associated risks of technological redundancy and the lengthening working lifetimes are taken into account. At the heart of the challenge for policy-makers is…

Chinese college graduates have faced increasing labor market competition since the expansion of tertiary education. Given rigid market demand, graduates with realistic earnings expectations may experience a more efficient job search. Using the 2008 MYCOS College Graduate Employment Survey, this study finds that a 1000 yuan reduction in a…

Human capital theory holds that a higher education will be pursued to the extent that its pecuniary rewards outstrip its costs. This notion is founded on the neoclassical economic assumption that expected earnings conditional on educational investment are accurately anticipated by those considering such investments. However, the evidence in…

This report revisits the debate about why social mobility levels are relatively low in Great Britain and the United States of America compared to other countries. It focuses on three main areas within this debate: (1) the changing role of educational inequalities; (2) the expectation of ever higher levels of education as revealed in increasing…

While there is an extensive literature on intergenerational transmission of economic outcomes (education, health and income for example), many of the pathways through which these outcomes are transmitted are not as well understood. We address this deficit by analysing the relationship between socio-economic status and child outcomes in university,…

A computer-assisted interview elicited responses from 110 high school and college students, revealing a common belief that the returns to a college education are positive, earnings rise between ages 30 and 40, and their own future earnings are uncertain. Respondents tended to overestimate the current degree of earnings inequality in the United…

Women's expectations of high rates of return to investment in higher education, particularly in nontraditional fields and in those requiring advanced degrees, are shown to be consistent with high levels of investment in these fields. Increasing workforce participation and decreasing fertility also contribute toward reducing the female-male…

We report the results of an experiment designed to elicit students' subjective beliefs about the economic returns to college education. An important feature of our experimental design is the inclusion of financial incentives for accurate reporting. We also consider the extent to which individuals' beliefs about their own returns differ from their…