The Earnings Expectations of Business Economics Students in the Czech Republic and England: the effect of seniority

While the financial returns to education have been widely studied since the 1960s, the research on students' earnings expectations is relatively scarce. This study investigates the effect of student seniority on their earnings expectations and their perceptions of the link between education and labour market outcomes. Business economics students were surveyed at two universities in England and two universities in the Czech Republic. A mixed-methods approach was used - questionnaires and focus groups - for data collection. First year students expected to earn more on average compared to their final year counterparts, both immediately after graduation and ten years later. Students expected their earnings to grow with education and experience. Students expected to earn more after graduation compared to what they would expect had they decided not to go to university. Final year English students who expected to achieve a first class honours degree had higher expectations compared with the rest of the sample. In both countries, final year students who expected to be overeducated after graduation anticipated a pay penalty. Final year students believed they would have been financially punished for leaving university during their final year. Students who intended to stay in their home regions after graduation had lower earnings expectations compared to those who were willing to relocate to the capital city or move abroad.