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Does Ignorance of Economic Returns and Costs Explain the Educational Aspiration Gap? Representative Evidence from Adults and Adolescents

The gap in university enrolment by parental education is large and persistent in many countries. In our representative survey of German adults, 74% of university graduates, but only 36% of those without a university degree, favour university education for their children. The latter are more likely to underestimate returns and overestimate costs of university. Similarly, 75% of adolescents with university‐educated parents, but only 51% without university‐educated parents aspire to a university degree. Experimental provision of general return and cost information does not close the aspiration gap as treatment effects are at least as strong for individuals with a university background as for those without. Differences in economic preference parameters also cannot account for the educational aspiration gap.