Wages and Higher Education Participation

Eleftheriou, Konstantinos and Athanasiou, George and Petrakis, Panagiotis (2009): Wages and Higher Education Participation. Forthcoming in: Journal of Research in Educational Sciences

Abstract

The paper develops a model for the screening mechanism for higher education, within an adverse selection framework. Specifically it examines the effect of wage earned by high school graduates on higher education participation. The model pinpoints a positive relation between the “high school” wage and the number of candidates entered in higher education with positive influences on the quality of selection mechanism. An empirical examination is conducted, using U.S. data, in order to investigate the validity of our analytical results.

• Item Type: MPRA Paper
• Language: English
• Keywords: Admissions; High school wage; Higher education; Quality
• Subjects: J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I28 - Government Policy; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J39 - Other

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