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The Effects Of Secondary School Quality On The Distribution Of Earnings

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  • Eric R. Eide
  • Mark H. Showalter
  • David P. Sims

Abstract

A number of researchers have investigated the effects of school quality on average earnings in the postschooling years. In this article we broaden the discussion to investigate whether school quality has a measurable impact at other points in the conditional earnings distribution. We find that in specifications that do not control for individual and family background characteristics there are differential effects of school resources on earnings. The most significant effects occur in the top half of the conditional earnings distribution. However, after controlling for a variety of demographic variables, much of the impact of school resources on earnings is diminished. Exceptions to this seem to be school enrollment levels and, to a lesser degree, expenditures: higher enrollments tend to raise the upper tail of the earnings distribution without a similar increase in the bottom of the distribution; the effect of expenditures is positive and significant for the 0.25 quantile and the median.

Suggested Citation

  • Eric R. Eide & Mark H. Showalter & David P. Sims, 2002. "The Effects Of Secondary School Quality On The Distribution Of Earnings," Contemporary Economic Policy, Western Economic Association International, vol. 20(2), pages 160-170, April.
    • Handle: RePEc:bla:coecpo:v:20:y:2002:i:2:p:160-170
    DOI: 10.1093/cep/20.2.160
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    References listed on IDEAS

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    1. Alan B. Krueger, 1999. "Experimental Estimates of Education Production Functions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 497-532.
    2. Eide, Eric & Showalter, Mark H., 1998. "The effect of school quality on student performance: A quantile regression approach," Economics Letters, Elsevier, vol. 58(3), pages 345-350, March.
    3. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    4. Buchinsky, Moshe, 1994. "Changes in the U.S. Wage Structure 1963-1987: Application of Quantile Regression," Econometrica, Econometric Society, vol. 62(2), pages 405-458, March.
    5. Powell, James L., 1986. "Censored regression quantiles," Journal of Econometrics, Elsevier, vol. 32(1), pages 143-155, June.
    6. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
    7. Betts, Julian R, 1995. "Does School Quality Matter? Evidence from the National Longitudinal Survey of Youth," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 231-250, May.
    8. Grogger, Jeff, 1996. "Does School Quality Explain the Recent Black/White Wage Trend?," Journal of Labor Economics, University of Chicago Press, vol. 14(2), pages 231-253, April.
    9. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-1177, September.
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    Cited by:

    1. John A. Bishop & Feijun Luo & Fang Wang, 2005. "Economic transition, gender bias, and the distribution of earnings in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(2), pages 239-259, April.
    2. Anh Tram Le & Paul W. Miller & Barry R. Chiswick, 2006. "The Immigrant-Native Born Earnings Gap in the US: a Quantile Regression Analysis and International Comparison," Economics Discussion / Working Papers 06-04, The University of Western Australia, Department of Economics.
    3. Eide, Eric R. & Showalter, Mark H. & Goldhaber, Dan D., 2010. "The relation between children's health and academic achievement," Children and Youth Services Review, Elsevier, vol. 32(2), pages 231-238, February.
    4. Eric R. Eide & Mark H. Showalter, 2005. "Does Improving School Quality Reduce The Probability Of Unemployment?," Contemporary Economic Policy, Western Economic Association International, vol. 23(4), pages 578-584, October.
    5. Richard J. Butler & Gene Lai, 2023. "Insurance wage-offer disparities by gender: random forest regression and quantile regression evidence from the 2010–2018 American Community Surveys," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 48(2), pages 192-229, September.
    6. Changhui Kang & Yoonsoo Park, 2021. "Private Tutoring and Distribution of Student Academic Outcomes: An Implication of the Presence of Private Tutoring for Educational Inequality," Korean Economic Review, Korean Economic Association, vol. 37, pages 287-326.
    7. Chiswick, Barry R. & Le, Anh T. & Miller, Paul W., 2006. "How Immigrants Fare Across the Earnings Distribution: International Analyses," IZA Discussion Papers 2405, Institute of Labor Economics (IZA).

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