Income expectations and the decision to enter higher education

Abstract

ABSTRACT This paper focuses upon ex-ante rates of return to higher education. Income stream data are presented for a sample of 261 undergraduates; initially for the group as a whole, and then by discipline and sex. The income stream data are used to calculate ex-ante rates of return. The rates of return are found to be substantially higher than those obtained in the limited number of other studies in the area, and are particularly high for women. A number of explanations are explored. The methodological issues in relation to ex-ante studies are specifically addressed.