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The US/Canada Difference in Postsecondary Educational Choice

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  • Hui, Taylor Shek-wai

Abstract

This paper attempts to tackle the puzzle of why more Canadians choose community colleges over universities than their American counterparts, when previous research has suggested that the return to community college education is low in Canada. Using data from the Survey of Labour and Income Dynamics for Canada and the National Longitudinal Survey of Youth 79 for the US, I estimate returns to education with a trinomial selection correction using various instruments. I simulate the educational choices of Canadians who face American returns to education, and vice versa. I found that Canadians have a relatively strong incentive to choose community colleges if occupational choices are controlled for. The second finding is that Canadian universities and colleges specialize in different types of human capital. Also, my analysis confirms that the elasticity of educational attainment to tuition and fees is low. Finally, the self-selection processes in the two countries are different. More able Americans have higher educational attainment while more productive Canadians prefer going to universities but not community colleges.

Suggested Citation

  • Hui, Taylor Shek-wai, 2004. "The US/Canada Difference in Postsecondary Educational Choice," MPRA Paper 17995, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17995
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    References listed on IDEAS

    as
    1. Willis, Robert J & Rosen, Sherwin, 1979. "Education and Self-Selection," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 7-36, October.
    2. Heckman, James J & Lochner, Lance & Taber, Christopher, 1998. "General-Equilibrium Treatment Effects: A Study of Tuition Policy," American Economic Review, American Economic Association, vol. 88(2), pages 381-386, May.
    3. Thomas J. Kane & Cecilia Elena Rouse, 1999. "The Community College: Educating Students at the Margin between College and Work," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 63-84, Winter.
    4. Kane, Thomas J & Rouse, Cecilia Elena, 1995. "Labor-Market Returns to Two- and Four-Year College," American Economic Review, American Economic Association, vol. 85(3), pages 600-614, June.
    5. Thomas J. Kane & Cecilia E. Rouse, 1993. "Labor Market Returns to Two- and Four-Year Colleges: Is a Credit a Credit and Do Degrees Matter?," NBER Working Papers 4268, National Bureau of Economic Research, Inc.
    6. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
    7. Garen, John, 1984. "The Returns to Schooling: A Selectivity Bias Approach with a Continuous Choice Variable," Econometrica, Econometric Society, vol. 52(5), pages 1199-1218, September.
    8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    9. Rouse, Cecilia Elena, 1995. "Democratization or Diversion? The Effect of Community Colleges on Educational Attainment," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 217-224, April.
    10. Thomas J. Kane & Cecilia E. Rouse, 1993. "Labor Market Returns to Two- And Four-Year College: Is a Credit a Credit And Do Degrees Matter?," Working Papers 690, Princeton University, Department of Economics, Industrial Relations Section..
    11. Thomas J. Kane & Cecilia Rouse, 1993. "Labor Market Returns to Two- And Four-Year College: Is A Credit a Credit And Do Degrees Matter?," Working Papers 690, Princeton University, Department of Economics, Industrial Relations Section..
    12. repec:fth:prinin:311 is not listed on IDEAS
    13. Trost, Robert P & Lee, Lung-Fei, 1984. "Technical Training and Earnings: A Polychotomous Choice Model with Selectivity," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 151-156, February.
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    Cited by:

    1. Joëlle Chatel-DeRepentigny & Claude Montmarquette & François Vaillancourt, 2011. "Les étudiants internationaux au Québec : état des lieux, impacts économiques et politiques publiques," CIRANO Working Papers 2011s-71, CIRANO.

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    More about this item

    Keywords

    Returns to Education; Educational Choices; Post-secondary Education.;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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