Does Ignorance of Economic Returns and Costs Explain the Educational Aspiration Gap? Representative Evidence from Adults and Adolescents

Bibliographic Data

ID9725628
AuthorsPhilipp Lergetporer (0000-0003-4392-3342, ifo Institute at the University of Munich and CESifo, corresponding author), Katharina Werner (0000-0002-7096-5890, ifo Institute at the University of Munich and CESifo, corresponding author), Ludger Woessmann (0000-0002-6912-2319, University of Munich and ifo Institute CESifo, IZA, and CAGE, corresponding author)
Year2021
Volume88
Issue351
Pages624-670
Publication date2021-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ecca.12371
OpenAlexW3166305838
LanguageEN
Citations received6
References cited69

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

Degree (music) · Demographic economics · Economic growth · Economics · Gender gap · Geography · German · Higher education · Ignorance · Political science · Preference · University education · Financial Literacy, Pension, Retirement Analysis · Intergenerational and Educational Inequality Studies · Psychology · School Choice and Performance

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