WHAT DO STUDENTS KNOW ABOUT WAGES - EVIDENCE FROM A SURVEY OF UNDERGRADUATES

The paper uses a survey to examine undergraduates' knowledge of salari es by type of education. Students' beliefs varied systematically with their year of study and personal background. The median student made ( estimated) absolute errors of approximately 20 percent, but the mean s igned error was only -6 percent. Regression analysis revealed links be tween students' knowledge of the labor market, and year of study, prox imity of the occupation to the student's own field and parents' income . Over half of learning occurred during the fourth year. Legit analyse s of students' use of information sources supported this conclusion. I mplications for human capital theory are considered.