University choice: The role of expected earnings, nonpecuniary outcomes, and financial constraints

Delavande, A; Zafar, B

University choice: The role of expected earnings, nonpecuniary outcomes, and financial constraints

Delavande, A

Zafar, B

Permalink

Publication Type:: Journal Article
Citation:: Journal of Political Economy, 2019, 127 (5), pp. 2343 - 2393
Issue Date:: 2019-10-01

Open Access

Copyright Clearance Process

Recently Added
In Progress
Open Access

This item is open access.

Adobe PDF

Download Published VersionAdobe PDF (297.08 kB)

View on publisher's site

View statistics

Full metadata record

Field	Value	Language
dc.contributor.author	Delavande, A https://orcid.org/0000-0001-8691-6359	en_US
dc.contributor.author	Zafar, B	en_US
dc.date.available	2020-10-01T19:03:16Z
dc.date.issued	2019-10-01	en_US
dc.identifier.citation	Journal of Political Economy, 2019, 127 (5), pp. 2343 - 2393	en_US
dc.identifier.issn	0022-3808	en_US
dc.identifier.uri	http://hdl.handle.net/10453/138878
dc.description.abstract	© 2019 by The University of Chicago. All rights reserved. We investigate the determinants of students’ university choice in Pakistan, with a focus on �monetary returns, nonpecuniary factors enjoyed at school, and financial constraints. To mitigate the identification problem concerning the separation of preferences, expectations, and market constraints, we use rich data on subjective expectations, with direct measures of financial constraints, to estimate a life-cycle model of school choice jointly with school-specific expectations of dropping out. We find that labor market prospects play a small role. Instead, nonpecuniary outcomes, such as the school’s ideology, are the major determinants. Policy simulations suggest that relaxing financial constraints would have large welfare gains.	en_US
dc.relation.ispartof	Journal of Political Economy	en_US
dc.relation.isbasedon	10.1086/701808	en_US
dc.rights	info:eu-repo/semantics/openAccess
dc.subject.classification	Economics	en_US
dc.title	University choice: The role of expected earnings, nonpecuniary outcomes, and financial constraints	en_US
dc.type	Journal Article
utslib.citation.volume	5	en_US
utslib.citation.volume	127	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	14 Economics	en_US
utslib.for	15 Commerce, Management, Tourism and Services	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Economics Discipline
utslib.copyright.status	open_access	*
pubs.issue	5	en_US
pubs.publication-status	Published	en_US
pubs.volume	127	en_US

Abstract:

© 2019 by The University of Chicago. All rights reserved. We investigate the determinants of students’ university choice in Pakistan, with a focus on �monetary returns, nonpecuniary factors enjoyed at school, and financial constraints. To mitigate the identification problem concerning the separation of preferences, expectations, and market constraints, we use rich data on subjective expectations, with direct measures of financial constraints, to estimate a life-cycle model of school choice jointly with school-specific expectations of dropping out. We find that labor market prospects play a small role. Instead, nonpecuniary outcomes, such as the school’s ideology, are the major determinants. Policy simulations suggest that relaxing financial constraints would have large welfare gains.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/138878