Young, gifted and lazy? : The role of ability and labor market prospects in student effort decisions

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2019
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de Pinto, Marco
Schultze, Gabriel
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Economics of Education Review. 2019, 72, pp. 66-79. ISSN 0272-7757. Available under: doi: 10.1016/j.econedurev.2019.04.004
Zusammenfassung

This paper examines the decision-making process of students from an economic perspective to understand the determinants of an individual’s willingness to provide effort. Our theoretical model predicts that ability and job market prospects are positive determinants. Analyzing a novel dataset on thousands of German students, however, we instead find that ability has a significantly negative effect on effort. It seems that the marginal gain of increasing effort in terms of higher expected income after studying is lower for high-ability students compared to low-ability students. In regard to the second determinant, the evidence rejects a similar argument, according to which great job market prospects may impair student effort. Applying an instrumental variable approach based on official unemployment data on regional labor markets, we can confirm our prediction on the positive role of perceived employment prospects in actual student behavior.

Zusammenfassung in einer weiteren Sprache
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330 Wirtschaft
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Higher education Effort Study time Leisure Ability Labor market data
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ISO 690CHADI, Adrian, Marco DE PINTO, Gabriel SCHULTZE, 2019. Young, gifted and lazy? : The role of ability and labor market prospects in student effort decisions. In: Economics of Education Review. 2019, 72, pp. 66-79. ISSN 0272-7757. Available under: doi: 10.1016/j.econedurev.2019.04.004
BibTex
@article{Chadi2019-10Young-47302,
  year={2019},
  doi={10.1016/j.econedurev.2019.04.004},
  title={Young, gifted and lazy? : The role of ability and labor market prospects in student effort decisions},
  volume={72},
  issn={0272-7757},
  journal={Economics of Education Review},
  pages={66--79},
  author={Chadi, Adrian and de Pinto, Marco and Schultze, Gabriel}
}
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