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Does Ignorance of Economic Returns and Costs Explain the Educational Aspiration Gap? Representative Evidence from Adults and Adolescents
Author(s) -
Lergetporer Philipp,
Werner Katharina,
Woessmann Ludger
Publication year - 2021
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/ecca.12371
Subject(s) - german , ignorance , university education , preference , demographic economics , degree (music) , economics , gender gap , psychology , higher education , political science , economic growth , geography , law , physics , archaeology , acoustics , microeconomics
The gap in university enrolment by parental education is large and persistent in many countries. In our representative survey of German adults, 74% of university graduates, but only 36% of those without a university degree, favour university education for their children. The latter are more likely to underestimate returns and overestimate costs of university. Similarly, 75% of adolescents with university‐educated parents, but only 51% without university‐educated parents aspire to a university degree. Experimental provision of general return and cost information does not close the aspiration gap as treatment effects are at least as strong for individuals with a university background as for those without. Differences in economic preference parameters also cannot account for the educational aspiration gap.