This article argues that the consumption value of education is an important motivation for educational choice. When controlling for ability, we find that individuals are willing to forego substantial future wage returns to acquire a particular type of higher education. We find that high-ability...

This paper argues that the consumption value of education is an important motivation for the educational choice. While controlling for ability, we document that individuals are willing to forego substantial future wage returns in order to acquire a particular type of higher education. We...

How the tax system might affect the individual s educational level is well studied. But the question of how the tax system affects the individual s choice of educational type is mostly ignored. This is an important issue, since the educational choice of today s young generation determines the...

The consumption value of higher education is an important factor behind the individual’s educational choice. We provide a comprehensive literature survey, and define the consumption value as the private, intended, non-pecuniary return to higher education. We provide new empirical evidence for...

This paper examines the effect of taxes on the individuals? choices of educational direction, and thus on the economy's skill composition. A proportional labour income tax induces too many workers with high innate ability to choose an educational type with high consumption value and low effort...

How the tax system might affect the individual's educational level is well studied. But the question of how the tax system affects the individual's choice of educational type is mostly ignored. This is an important issue, since the educational choice of today's young generation determines the...