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Heterogeneity in the Effect of College Expansion Policy on Wages: Evidence from the Russian Labor Market

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  • Volha Belskaya
  • Klara Sabirianova Peter
  • Christian M. Posso

Abstract

This paper studies the effects of a landmark college expansion policy on wages in Russia. We construct a unique individual-level data set linking the supply of college campuses in an individual’s place of residence at age 17 with educational attainment and hourly wages in adulthood. Using parametric and semiparametric selection models, we demonstrate that the returns to college education in Russia are heterogeneous and depend on whether individuals live in areas with limited college availability. The cost-benefit analysis demonstrates that discounted net benefits of college education for students in constrained municipalities exceed those for students in large cities twofold.

Suggested Citation

  • Volha Belskaya & Klara Sabirianova Peter & Christian M. Posso, 2020. "Heterogeneity in the Effect of College Expansion Policy on Wages: Evidence from the Russian Labor Market," Journal of Human Capital, University of Chicago Press, vol. 14(1), pages 84-121.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/706484
    DOI: 10.1086/706484
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    Cited by:

    1. Kyui, Natalia & Radchenko, Natalia, 2021. "The changing composition of academic majors and wage dynamics: Beyond mean returns," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 358-381.
    2. Sergey Alexeev, 2023. "Technical change and wage premiums amongst skilled labour: Evidence from the economic transition," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(1), pages 189-216, January.
    3. Kyui, Natalia & Radchenko, Natalia, 2020. "The Changing Composition of Academic Majors and Wage Dynamics," IZA Discussion Papers 13591, Institute of Labor Economics (IZA).
    4. Antonio Di Paolo & Khalifany-Ash Shidiqi, 2024. "“Education and Ethnic Intermarriage: Evidence from Higher Education Expansion in Indonesia”," AQR Working Papers 202403, University of Barcelona, Regional Quantitative Analysis Group, revised May 2024.
    5. Andrea Otero-Cortés, 2022. "Heterogeneous Returns of Informality: Evidence From Brazil," Documentos de Trabajo Sobre Economía Regional y Urbana 20176, Banco de la República, Economía Regional.
    6. Leonardo Fabio Morales & Christian Posso & Luz A. Flórez, 2021. "Heterogeneity in the Returns to Tertiary Education for the Disadvantage Youth: Quality vs. Quantity Analysis," Borradores de Economia 1150, Banco de la Republica de Colombia.
    7. Alexeev, Michael & Natkhov, Timur & Polishchuk, Leonid, 2024. "Institutions, abilities, and the allocation of talent: Evidence from Russian regions," Journal of Comparative Economics, Elsevier, vol. 52(1), pages 271-296.

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