The Journal of Human Resources · 1996 · 326 citations · 11 references
Social SciencesEconomicsHigher EducationEconometricsLabor EconomicsLabor RelationsHuman CapitalIncome DistributionLabor Market InformationStudent Demographics AnalysisWage DeterminationWorkforce DemographicsAcademic SalariesLabor Market Returns To EducationOccupational Information SourcesOccupational Returns To EducationSocioeconomic Background
The study considers implications for human capital theory. The study surveys undergraduates to assess their knowledge of salaries by education type. The authors surveyed undergraduates, gathering salary estimates across education types. Students’ salary estimates varied with year of study and background, with median absolute errors around 20 % and mean signed error of –6 %, and regression and logit analyses linked knowledge to year, field proximity, parents’ income, indicating that over half of learning occurs in the fourth year.
The paper uses a survey to examine undergraduates' knowledge of salaries by type of education. Students' beliefs varied systematically with their year of study and personal background. The median student made (estimated) absolute errors of approximately 20 percent, but the mean signed error was only -6 percent. Regression analysis revealed links between students' knowledge of the labor market, and year of study, proximity of the occupation to the student's own field and parents' income. Over half of learning occurred during the fourth year. Logit analyses of students' use of information sources supported this conclusion. Implications for human capital theory are considered.
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