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Estimating The Payoff To Attending A More Selective College: An Application Of Selection On Observables And Unobservables

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Author Info
Stacy Berg Dale
Alan B. Krueger

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Abstract

Estimates of the effect of college selectivity on earnings may be biased because elite colleges admit students, in part, based on characteristics that are related to future earnings. We matched students who applied to, and were accepted by, similar colleges to try to eliminate this bias. Using the College and Beyond data set and National Longitudinal Survey of the High School Class of 1972, we find that students who attended more selective colleges earned about the same as students of seemingly comparable ability who attended less selective schools. Children from low-income families, however, earned more if they attended selective colleges. © 2001 the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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Publisher Info
Article provided by MIT Press in its journal The Quarterly Journal of Economics.

Volume (Year): 117 (2002)
Issue (Month): 4 (November)
Pages: 1491-1527
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Handle: RePEc:tpr:qjecon:v:117:y:2002:i:4:p:1491-1527

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Daniel, K. & Black, D. & Smith, J., 1997. "College Quality and the Wages of Young Men," UWO Department of Economics Working Papers 9707, University of Western Ontario, Department of Economics.
    Other versions:
  2. repec:wil:wilehe:38 is not listed on IDEAS
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  4. Dominic J. Brewer & Eric Eide & Ronald G. Ehrenberg, 1996. "Does It Pay To Attend An Elite Private College? Cross Cohort Evidence on the Effects of College Quality on Earnings," NBER Working Papers 5613, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Behrman, Jere R & Rosenzweig, Mark R & Taubman, Paul, 1996. "College Choice and Wages: Estimates Using Data on Female Twins," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 672-85, November. [Downloadable!] (restricted)
  6. Caroline M. Hoxby & Bridget Terry, 1999. "Explaining Rising Income and wage Inequality Among the College Educated," NBER Working Papers 6873, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Wise, David A, 1975. "Academic Achievement and Job Performance," American Economic Review, American Economic Association, vol. 65(3), pages 350-66, June. [Downloadable!] (restricted)
  8. van der Klaauw, Wilbert, 1997. "A Regression-Discontinuity Evaluation of the Effect of Financial Aid Offers on College Enrollment," Working Papers 97-10, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  9. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S37-64, October. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2006. "The Short- and Long-Term Career Effects of Graduating in a Recession: Hysteresis and Heterogeneity in the Market for College Graduates," NBER Working Papers 12159, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. David Card & Alan B. Krueger, 2004. "Would the Elimination of Affirmative Action Affect Highly Qualified Minority Applicants? Evidence from California and Texas," NBER Working Papers 10366, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Alberto Chong & José Galdo, 2006. "Does the Quality of Training Programs Matter? Evidence from Bidding Processes Data," RES Working Papers 4451, Inter-American Development Bank, Research Department. [Downloadable!]
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  4. Audrey Light & Wayne Strayer, 2003. "Who Receives the College Wage Premium? Assessing the Labor Market Returns to Degrees and College Transfer Patterns," Working Papers 03-02, Ohio State University, Department of Economics. [Downloadable!]
  5. Bergh, Andreas & Fink, Günther, 2005. "Escaping Mass Education – Why Harvard Pays," Working Papers 2005:2, Lund University, Department of Economics. [Downloadable!]
  6. Carolina Castagnetti & Francesco Chelli & Luisa Rosti, 2005. "Educational Performance as Signalling Device: Evidence from Italy," Economics Bulletin, Economics Bulletin, vol. 9(4), pages 1-7. [Downloadable!]
  7. Ono, Hiroshi, 2000. "College Quality and Earnings in the Japanese Labor Market," Working Paper Series in Economics and Finance 395, Stockholm School of Economics, revised 06 Sep 2000. [Downloadable!]
  8. Stephen Calabrese & Dennis Epple & Thomas Romer & Holger Sieg, 2005. "Local Public Good Provision: Voting, Peer Effects, and Mobility," NBER Working Papers 11720, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Michael J. Rizzo, 2005. "The public interest in higher education," Proceedings, Federal Reserve Bank of Cleveland, pages 19-45. [Downloadable!]
  10. Holger Sieg & Dennis Epple & Richard Romano, 2003. "Peer effects, financial aid and selection of students into colleges and universities: an empirical analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 501-525. [Downloadable!]
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  11. Eliasson, Kent, 2006. "How Robust is the Evidence on the Returns to College Choice? Results Using Swedish Administrative Data," UmeÃ¥ Economic Studies 692, Umeå University, Department of Economics. [Downloadable!]
  12. Eliasson, Kent, 2006. "The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence," UmeÃ¥ Economic Studies 691, Umeå University, Department of Economics. [Downloadable!]
  13. Chevalier, Arnaud & Harmon, Colm & Walker, Ian & Zhu, Yu, 2003. "Does Education Raise Productivity or Just Reflect It?," CEPR Discussion Papers 3993, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  14. Betts, Julian & Ferrall, Christopher & Finnie, Ross, 2007. "L'incidence des caractéristiques d'une université sur les résultats professionnels après le diplôme : témoignages de trois cohortes canadiennes récemment diplômées," Direction des études analytiques : documents de recherche 2007292f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  15. Scott E. Carrell & Richard L. Fullerton & James E. West, 2008. "Does Your Cohort Matter? Measuring Peer Effects in College Achievement," NBER Working Papers 14032, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Lorraine Dearden & Carl Emmerson & Christine Frayne & Costas Meghir, 2005. "Education subsidies and school drop-out rates," IFS Working Papers W05/11, Institute for Fiscal Studies. [Downloadable!]
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  17. Eliasson, Kent, 2006. "College Choice And Earnings Among University Graduates In Sweden," UmeÃ¥ Economic Studies 693, Umeå University, Department of Economics. [Downloadable!]
  18. Jeffrey A. Groen & Michelle J. White, 2003. "In-State versus Out-of State Students: The Divergence of Interest between Public Universities and State Governments," NBER Working Papers 9603, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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