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University Selectivity, Initial Job Quality, and Longer-Run Salary

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  • Weinstein, Russell

    (University of Illinois at Urbana-Champaign)

Abstract

Using Baccalaureate and Beyond data, I study whether university quality, both absolute and relative to other universities in the region, affects earnings one and ten years after graduation, controlling for the individual's SAT score. One year after graduation, high SAT score students earn 12% less if their university's regional rank is worse by 35 places, conditional on absolute university quality. This effect disappears ten years after graduation. The results suggest initial job quality does not have long-run career effects. The results also confirm the initial importance of a university's regional rank, an often overlooked dimension of university quality.

Suggested Citation

  • Weinstein, Russell, 2017. "University Selectivity, Initial Job Quality, and Longer-Run Salary," IZA Discussion Papers 10911, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10911
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    References listed on IDEAS

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    More about this item

    Keywords

    labor market return to higher education; employer learning; statistical discrimination;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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