Overconfidence in salary expectations after graduation
We investigate the degree of overconfidence in earnings percentile expectations one year, five years, and ten years after graduation. The results reveal extreme overconfidence in the expected earnings percentile five years and ten years after graduation. This overconfidence is only marginally explained by various demographic variables, including gender, marital status, socioeconomic status, GPA, and the perceived difficulty in finding a job after graduation. A subsample of “highly motivated” finance students expects to earn less than regular students one and five years after graduation, but is more overconfident about its increasing earnings potential over time. The findings reported here are useful in managing graduates’ expectations as they enter the workforce.
Journal of Education for Business
Digital Object Identifier (DOI)
Schnusenberg, O. (2020) Overconfidence in Salary Expectations After Graduation. Journal of Education for Business, 95(8), 513-518.