Academic and non-academic investments at university: The role of expectations, preferences and constraints

This paper estimates a discrete choice model of time allocation decisions made by university students. We consider investments in academic and non-academic activities, such as job placements or volunteering. Identification is achieved using data collected through recent survey UK students on subjective expectations about the returns to these enjoyment derive from them. Unobserved heterogeneity set addressed sufficient logit method. The analysis reveals significant ethnic differences level investments, expected labour market returns, activities. Simulations suggest that existing constraints play an important role explaining gaps investments.