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College Choice and Subsequent Earnings: Results Using Swedish Sibling Data

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  • Lena Lindahl
  • Hakan Regnér

Abstract

Using data on 19,000 whole siblings, it is shown that earnings vary significantly among students who have graduated from different colleges. The cross-section estimates are up to twice the within-family estimates, indicating that a regression estimator of college effects that does not adjust properly for family characteristics will overestimate the earnings premium of college. This study also shows that the effects of college choice vary between sisters and brothers and that there is a relationship between teacher quality and the college effects. These findings suggest that there is no straightforward interpretation of college in individual earnings equations. Copyright The editors of the "Scandinavian Journal of Economics", 2005 .

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Bibliographic Info

Article provided by Wiley Blackwell in its journal The Scandinavian Journal of Economics.

Volume (Year): 107 (2005)
Issue (Month): 3 (09)
Pages: 437-457

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Handle: RePEc:bla:scandj:v:107:y:2005:i:3:p:437-457

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  1. Altonji, Joseph G & Dunn, Thomas A, 1996. "Using Siblings to Estimate the Effect of School Quality on Wages," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 665-71, November.
  2. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366 Elsevier.
  3. Orley Ashenfelter & David J. Zimmerman, 1993. "Estimates of the Returns to Schooling From Sibling Data: Fathers, Sons and Brothers," NBER Working Papers 4491, National Bureau of Economic Research, Inc.
  4. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 87(5), pages S37-64, October.
  5. Loury, Linda Datcher & Garman, David, 1995. "College Selectivity and Earnings," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 13(2), pages 289-308, April.
  6. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier.
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Cited by:
  1. Eliasson, Kent, 2006. "How Robust is the Evidence on the Returns to College Choice? Results Using Swedish Administrative Data," Umeå Economic Studies 692, Umeå University, Department of Economics.
  2. Stacy Dale & Alan B. Krueger, 2011. "Estimating the Return to College Selectivity over the Career Using Administrative Earning Data," Working Papers 1297, Princeton University, Department of Economics, Industrial Relations Section..
  3. Björklund, Anders, 2006. "Family Background and Outcomes Later in Life: A (Partial and Personal) Survey of Recent Research Using Swedish Register Data," Working Paper Series 4/2007, Swedish Institute for Social Research.
  4. Li, Hongbin & Meng, Lingsheng & Shi, Xinzheng & Wu, Binzhen, 2012. "Does attending elite colleges pay in China?," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 78-88.
  5. Smith, Jonathan, 2013. "Ova and out: Using twins to estimate the educational returns to attending a selective college," Economics of Education Review, Elsevier, Elsevier, vol. 36(C), pages 166-180.
  6. Justine S. Hastings & Christopher A. Neilson & Seth D. Zimmerman, 2013. "Are Some Degrees Worth More than Others? Evidence from college admission cutoffs in Chile," NBER Working Papers 19241, National Bureau of Economic Research, Inc.
  7. Eliasson, Kent, 2006. "The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence," Umeå Economic Studies 691, Umeå University, Department of Economics.
  8. Daghbashyan, Zara & Hårsman, Björn, 2012. "University choice and entrepreneurship," Working Paper Series in Economics and Institutions of Innovation, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies 292, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  9. Suhonen, Tuomo, 2013. "Are there returns from university location in a state-funded university system?," Regional Science and Urban Economics, Elsevier, vol. 43(3), pages 465-478.
  10. Mark L. Hoekstra, 2007. "The Effect of Attending the Flagship State University on Earnings: A Discontinuity-Based Approach," Working Papers, University of Pittsburgh, Department of Economics 303, University of Pittsburgh, Department of Economics, revised Apr 2008.
  11. Polona Domadenik & Dasa Farcnik, 2011. "Did Bologna reform improve school-to-work transition of graduates? Evidence from Slovenia," Investigaciones de Economía de la Educación volume 6, Asociación de Economía de la Educación, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 40, pages 649-665 Asociación de Economía de la Educación.
  12. Eliasson, Kent, 2006. "College Choice And Earnings Among University Graduates In Sweden," Umeå Economic Studies 693, Umeå University, Department of Economics.
  13. Stenberg, Anders, 2007. "Does adult education at upper secondary level influence annual wage earnings?," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2007:9, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  14. Grove, Wayne A. & Hussey, Andrew, 2014. "Returns to MBA quality: Pecuniary and non-pecuniary returns to peers, faculty, and institution quality," Labour Economics, Elsevier, vol. 26(C), pages 43-54.
  15. Broecke, Stijn, 2012. "University selectivity and earnings: Evidence from UK data on applications and admissions to university," Economics of Education Review, Elsevier, Elsevier, vol. 31(3), pages 96-107.

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