Stated and Revealed Heterogeneous Risk Preferences in Educational Choice

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. In contrast to experimental settings, educational choice is one of the most important economic decisions taken by individuals, and we observe actual choices in representative panel data. We JEL classification: I20, D81. Terms of use: Documents in

Income in jeopardy: How losing employment affects the willingness to take risks

“…According to the findings of Dohmen et al (2011) as well as Fossen and Glocker (2014), people answer in line with alternative measurements of risk attitudes (risk attitudes revealed through decisions under uncertainty, such as real-stake lotteries, holding stocks, being selfemployed, educational choices). Thus, the item can be considered a behaviourally valid measure of risk attitude, which we will discuss further with respect to our results in Section 5.5.…”

“…For primarily methodological discussions of the survey item seeDohmen et al (2011) andCharness et al (2013). For recent applications of the item see, for instance, Pannenberg (2010), Jaeger et al (2010),, 2015a, 2015b, Brachert and Hyll (2014,Skriabikova et al (2014),Fossen and Glocker (2014),Görlitz and Tamm (2015),Schurer (2015),Goebel et al (2015).…”

Gender gap in self‐employment: The role of risk attitudes

“…As a result, the female–male wage ratio reached 60% at the end of the decade (see Brainerd, ). Moreover, at the top of the wage distribution, gender wage inequality has even increased over time (see Ganguli and Terrell, ). Additionally, Ukrainian women have a higher probability than men of being involuntarily separated from employment (see Lehmann et al ., ).…”

Subjective Completion Beliefs and the Demand for Post-Secondary Education

“…Empirical approaches based on structural assumptions that distinguish ex ante from ex post returns to education include Carneiro et al (2003), Cunha, Heckman and Navarro (2005), Cunha and Heckman (2007), and Foley, Gallipoli and Green (2014). 1 However, there is relatively little empirical work using completion probabilities directly; notable exceptions using predicted college completion probabilities include Hussey and Swinton (2011), Fossen and Glocker (2014), and Castex (2015). In general, when studying choice under uncertainty, researchers have to make assumptions about how expectations are formed (Manski, 2004), and, most commonly, such work relies on rational expectations, e.g., that individuals' predictions are unbiased.…”

“…To assess their post-secondary investment intention, we use a self-reported measure elicited in the youth questionnaire: Students are asked to indicate which further educational degree, if any, they 9 Additionally, students could also drop out after completing high school, but this rarely occurs in practice (see also Fossen and Glocker, 2014). Note that here university subsumes universities of applied sciences.…”