Research

Working Papers

The Expected (Signaling) Value of Higher Education 

joint with Laura Ehrmantraut and Pia Pinger (reject and resubmit at Review of Economic Studies)

This paper explores students’ expectations about the returns to completing higher education and provides first evidence on perceived signaling and human capital effects. We elicit counterfactual labor market expectations for the hypothetical scenarios of leaving university with or without a degree certificate among a large and diverse sample of students at different stages of higher education. Our findings indicate substantial perceived returns to higher education. Moreover, by exploiting within-individual variation, we document sizable expected labor market returns from signaling, whereas perceived productivity-enhancing (human capital) returns seem to be less pronounced. Over the expected course of career, we find lasting education premia as well as evidence consistent with employer learning.

IZA Discussion Paper No. 13729

Media coverage: Oekonomenstimme (German)

Belief-Related Origins of the Education Premium: Causal Evidence from Employer Assessments 

joint with Laura Ehrmantraut and Pia Pinger

Why do employers seek to attract individuals with more education? We experimentally vary rates of master degree completion on applicant resumes to shift beliefs about candidates' productive traits among a large sample of top-level employers. Our results confirm that a master's degree raises employers' willingness to invite candidates for a job interview, to make an offer, and to pay higher wages. Moreover, we find that Master graduates outdo bachelor degree holders in terms of employer perceived cognitive and non-cognitive traits as well as expertise. Master dropouts are attributed worse non-cognitive traits such as perseverance and commitment. The difference in perceived traits explains up to 75 percent of candidate attractiveness.  This paper thus provides causal evidence on the origins of the education premium.

Publications

Short-Run Shock, Long-Run Consequences?  The Impact of Grandparental Death on Educational Outcomes

Economics of Education Review, 2022, vol. 91, https://doi.org/10.1016/j.econedurev.2022.102310.

This paper examines the consequences of temporary emotional distress during a critical educational stage on children’s short and long-run academic outcomes. I exploit the quasi-random timing of grandparental death surrounding the transition to tracked secondary education in the Netherlands. I detect small but significant negative effects on standardized test performance and teachers’ track recommendation for distressed children. Consequently, these children have a higher probability to be placed, attend and graduate from the most outlook-restricted secondary school track. These findings highlight that a relatively short-lived instance of distress during a high-stakes transition can have lasting negative consequences for children’s educational career.

Previously circulated under the title  "A Setback Set Right? Unfortunate  Timing of  Family Distress and Educational Outcomes" (CRC TR 224 Discussion Paper No. 206)

Work in Progress

Employment of Informal Caregivers: Does Municipal Support Matter?

Public and Political Responses to Refugees 

joint with Paul Bose and Olivier Marie

Poor Rich Women: Female Labor Market Outcomes and the Loss of Childcare Subsidy

joint with Gabriele Mari and Olivier Marie

Retired papers

Environmental Incentives and Parental Investments

CRC TR 224 Discussion Paper No. 205