Analysis Of Economic Motives In The Individual Choice Of Educational Paths

Viktor A. Koksharov, Gavriil A. Agarkov

Abstract


The article explores economic motive forces that drive individuals to make their choices of educational paths. This research issue is relevant in equal measure to theory — the study of economic human behavior, and practice — the enhancement of human capital investment efficiency.

The authors have developed an econometric model of individual choice decisions concerning educational paths. It was implemented with the software support and bolstered with the live data on over 5.5 thousand students. To analyze the values of rational economic expectancies in the choice of educational paths, the students’ preferences were compared to the optimal, economically feasible educational paths.

The findings have shown that a choice of educational paths is chiefly made in line with the economic incentives. With respect to the analyzed sample, 66% of university applicants made their choices with regard to economic preferences. Higher expected earnings after graduation — 22% of the choices, and reduction in college tuition costs or education against the budget — 12%, are the most significant factors shaping optimal educational paths.

We believe that one outcome from the research is the prospect of a national policy issue for human capital investment with due regard for students and university entrants’ expectancies.


Keywords


system of higher education; econometric modeling; educational paths; behavioral economics; economic expectancies

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DOI: https://doi.org/10.15826/recon.2015.1.014

Copyright (c) 2018 Viktor A. Koksharov, Gavriil A. Agarkov

© R-Economy, ISSN 2412-0731