Investment in human capital forms an integral part of growth policy in developing countries. Many effective policy measures to encourage schooling, with conditional cash transfers being a leading example, can be quite expensive. Recent studies have shown that beliefs of the returns to schooling can be a powerful predictor of schooling decisions, and further that providing information on the returns to schooling can be a very cheap yet effective policy measure for encouraging schooling.
This project seeks to understand the formation of beliefs of the returns to schooling and will inform policies to correct inaccurate beliefs through a series of surveys and field experiments.
Berry, J.; Coffman, L. Belief Formation of the Returns to Schooling and How to De-Bias Incorrect Beliefs. International Growth Centre (IGC), London, UK (2012) 5 pp.