2,453 research outputs found

    Expected Future Earnings, Taxation, and University Enrollment: A Microeconometric Model with Uncertainty

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    Taxation changes the expectations of prospective university students about their future level and uncertainty of after-tax income. To estimate the impact of taxes on university enrollment, we develop and estimate a structural microeconometric model, in which a high-school graduate decides to enter university studies if expected lifetime utility from this choice is greater than that anticipated from starting to work right away. We estimate the ex-ante future paths of the expectation and variance of net income for German high-school graduates, using only information available to those graduates at the time of the enrollment decision, accounting for multiple nonrandom selection and employing a microsimulation model to account for taxation. In addition to income uncertainty, the enrollment model takes into account university dropout and unemployment risks, as well as potential credit constraints. The estimation results are consistent with expectations. First, higher risk-adjusted returns to an academic education increase the probability of university enrollment. Second, high-school graduates are moderately risk averse, as indicated by the Arrow-Pratt coefficient of risk aversion estimated within the model. Thus, higher uncertainty among academics decreases enrollment rates. A simulation based on the estimated structural model indicates that a revenue-neutral, flat-rate tax reform with an unchanged basic tax allowance would increase enrollment rates for men in Germany because of the higher expected net income in the higher income range.University Enrollment, Income Taxation, Flat Tax, Income Risk, Risk Aversion

    Risk Premium and Expectations in Higher Education

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    This paper takes the risk of college participation into context when evaluating the return to college education. College dropout and a higher permanent income shock for those who graduate from college accounts for 51% of the excess return to college education. Using a simple risk premium approach, I reconcile the observed high average returns to schooling with relatively low attendance rates. A high dropout risk has two important effects on the estimated average returns to college education: via selection bias and via risk premium.

    Explaining Demand for Higher Education

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    Recognizing the crucial role of higher education for the development of nations and individuals, many countries have recently established ambitious targets for the percentage of graduates in their population by 2020. In peripheral European Union countries, however, such objectives may be difficult to attain. In fact, both the current stringent fiscal consolidation processes and the overall depressed economic environment may exert negative effects upon domestic demand for higher education. Such uncertain context increases the need for efficient policies and henceforth the value of obtaining reliable information on the variables that are more likely to influence demand. In this study, we employ the partial least squares methodology, which allows modeling with many variables, even with relatively few observations, to identify the most relevant determinants of demand for higher education. We focus in the case of Portugal, a country where applications for higher education are centralized and thus provides a long and reliable set of data on aggregate demand. The results of our empirical analysis suggest that the most relevant determinants of demand are institutional and/or policy dependent and, therefore, may be controlled by decision makers and managed to support national strategic objectives. These results, obtained for Portugal, are also useful particularly for other southern European Union countries, which share some of the Portuguese economic, social, demographic and cultural characteristics

    Education Pays 2016: The Benefits of Higher Education for Individuals and Society

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    Similar to previous editions, Education Pays 2016: The Benefits of Higher Education for Individuals and Society documents differences in the earnings and employment patterns of U.S. adults with different levels of education. It also compares healthrelated behaviors, reliance on public assistance programs, civic participation, and indicators of the well-being of the next generation.In addition to reporting median earnings by education level, this year's report also presents data on variation in earnings by different characteristics such as gender, race/ethnicity, occupation, college major, and sector. Education Pays 2016 also examines the persistent disparities across different socioeconomic groups in college participation and completion. The magnitude of the benefits of postsecondary education makes ensuring improved access for all who can benefit imperative.Our focus is on outcomes that are correlated with levels of educational attainment, and it is important to be cautious about attributing all of the observed differences to causation. However, reliable statistical analyses support the significant role of postsecondary education in generating the benefits reported

    Data Breaches in Higher Education Institutions

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    The State of Higher Education in California: Black Report

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    This report examines how the California's 2.16 million Black residents (6 percent of total population) are faring in higher education attainment compared with other racial/ethnic groups. While Black Californians have improved their education outcomes over the last couple of decades, they still experience significant opporunity gaps. The report calls for a concerted, strategic effort to produce better educational outcomes for Black students including a new statewide plan for California higher education, a redesign of pre-college level courses, re-enrollment of adults with some college but no degree, and allowing public universities to use race/ethnicity as one of many considerations in their admissions process

    Competency Based Learning in Hospitality Education and Its Impact on Future Leadership Skills

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    In the past five years, hospitality educational programs have seen a distinct decline in enrollment from year to year (Oakley, 2016). Upon reflection of this decline, there could be many reasons, which caused a consecutive downward trajectory regarding enrollment. First, individuals are finding that a formal degree is not required for entry-level positions in the hospitality industry. Second, people are utilizing technology and videos to substitute for formal education and are finding success in the entry-level hiring process. Third, this generation does not see the value in formal education for entry-level employment. True as that might be, trends have shown that these individuals forego formal education completely and immediately enter into the workforce (Hersh, 2015). However, these individuals work for a short period of time and discover that promotion is not attainable since they lack the proper skill-set essential for leadership roles. Brownell and Chung (2001) argued that hospitality curriculum may not be offering the right knowledge and skills to individuals seeking future work and that a change must be made in higher education to address the issue. Perhaps the notion is that individuals need more than technical skills in order to succeed in their careers. If this statement is true, then putting forth changes to the curriculum in order to fill gaps in education is the first step to accomplishment. This paper examines whether competency based learning (CBL) in higher education is predictive of leadership outcomes in the hospitality industry. Within the higher education framework, competency based learning focuses on theory supported skill development and the application of concepts in scenario-based and problem-based assessments. More importantly, competency based learning emphasizes student advancement via demonstrated mastery of competencies that are specific, measureable and are learning objectives that empower students. In addition, the student learning outcomes stress competencies that include application and creation of knowledge along with the development of important skills and dispositions. Finally, CBL allows students to learn skills vital to leadership success in the hospitality industry

    Marginal willingness to pay for education and the determinants of enrollment in Mexico

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    Standard benefit-incidence analysis assumes that the subsidy, and quality of education services are the same for all income deciles. This strong assumption tends to minimize the distributional inequity at various education levels. Using a new approach, emphasizing marginal willingness to pay for education, the authors analyze the impact of public spending on the education spending behavior of the average household. They address several questions: What would an average household, with a given set of characteristics be willing to spend on an individual child, with given traits if subsidized public education facilities were unavailable? What would the household have saved by sending the child to public school rather than private school? How great are these savings for various income groups? What are the determinants of enrollment by income group, and by location? How do individuals'education expenditures affect enrollment patterns? Among their findings: 1) The non-poor households in urban areas get much of the subsidy, or"savings"from government provision of education services. 2) The wealthy value private education more than the poor do. 3) Differences in school quality are greater at the primary level. In other words, wealthy households get the lion's share of benefits from public spending on education. Household school enrollment, and transition to the next level of schooling, depend heavily on the cost of schooling, how far the head of the household went in school, the per capita household income, and the housing facilities, or services. But the government's effort also affects the probability of enrollment, and transition. The probability of enrollment is much higher for the 40 percent of higher-income households in urban areas, than it is for the 40 percent of lower-income households in rural areas. The best way to increase school enrollment is to successfully target public spending on education to poor households.Public Health Promotion,Primary Education,Education Reform and Management,Teaching and Learning,Health Monitoring&Evaluation,Primary Education,Teaching and Learning,Gender and Education,Education Reform and Management,Health Economics&Finance

    Can higher education foster economic growth?—a conference summary

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    While higher education is being asked to perform more roles in the local economy, specific pathways for influencing local and regional economic transformation are still being identified. On October 30, 2006, the Federal Reserve Bank of Chicago and the Midwest Higher Education Compact held a conference on higher education and economic growth.Education, Higher - Economic aspects ; Education - Middle West - Chicago (Ill.)
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