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.
Highlights
The article explores economic motive forces that drive individuals to make their choices of educational paths
The authors have developed an econometric model of individual choice decisions concerning educational paths
The findings have shown that a choice of educational paths is made in line with the economic incentives
Summary
Radioelectronics and Information Technologies (radio engineering, radioelectronic systems and complexes) 9. Fundamental Education (fundamental informatics and information technologies, linguistics) 15. It should be added that the present model does not make it possible to analyze educational paths on the basis of budgeted higher education and further educational courses in the occupations demanded by the market This strategy promotes economic appeal of government paid education for individuals. The possibility of lower tuition fees or government subsidies can be the cause for developing an optimal educational path, in terms of economic expectations, that accounts for 12 percent of all the paths. The research outcomes raise concern about higher education and the labor-market, as the current situation can decrease the efficiency of the public investments in human capital.
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