The Expected (Signaling) Value of Higher Education

• Department of Economics

In this seminar, Pia Pinger (University of Cologne) will present her paper "The Expected (Signaling) Value of Higher Education."

This paper explores students' expectations about the returns to completing higher education and provides first evidence on perceived signaling and human capital effects. We elicit counterfactual labour market expectations for the hypothetical scenarios of leaving university with or without a degree certificate among a large and diverse sample of students at different stages of higher education.

Our findings indicate substantial expected labour market returns from signaling, whereas perceived productivity-enhancing (human capital) returns seem to be less pronounced. Over the expected course of career, we find lasting education premia as well as evidence consistent with employer learning.

Co-authors: L. Ehrmantraut (University of Bonn) and R. Stans (Erasmus University Rotterdam)