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Estimating pecuniary and non-Pecuniary returns to college education for academically marginal students: Evidence from the college enrollment quota policy in south korea

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  • Kim, Taehoon

Abstract

This paper investigates pecuniary and non-pecuniary returns to college education for academically marginal students in South Korea. The Korean government limits the number of admission slots at each college by assigning a quota for each year, and the quota is binding. An increase in the quota allows more academically marginal students to enter college. The IV estimation using differences in the ratio of 4-year college quotas to cohort size across regions and cohorts shows that 4-year college attendance of marginal students increases hourly wages by 60.3%-75.5%. College education also increases fringe benefits, life, and job satisfaction.

Suggested Citation

  • Kim, Taehoon, 2021. "Estimating pecuniary and non-Pecuniary returns to college education for academically marginal students: Evidence from the college enrollment quota policy in south korea," Economics of Education Review, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:ecoedu:v:83:y:2021:i:c:s0272775721000613
    DOI: 10.1016/j.econedurev.2021.102142
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    Cited by:

    1. Yeonho Bae & Taehoon Kim, 2023. "The labor market impacts of graduating from university during a recession: evidence and mechanisms," Empirical Economics, Springer, vol. 64(2), pages 931-958, February.
    2. Bertermann, Alexander & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2023. "More education does make you happier - unless you are unemployed," DICE Discussion Papers 406, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    3. Bertermann, Alexander & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2023. "More Education Does Make You Happier – Unless You Are Unemployed," IZA Discussion Papers 16454, Institute of Labor Economics (IZA).
    4. Jinho Kim & Sujeong Park & S. V. Subramanian & Taehoon Kim, 2023. "The Psychological Costs of the COVID-19 Pandemic and Heterogeneous Effects in South Korea: Evidence from a Difference-in-Differences Analysis," Journal of Happiness Studies, Springer, vol. 24(2), pages 455-476, February.
    5. Alexander Bertermann & Daniel A. Kamhöfer & Hannah Schildberg-Hörisch, 2023. "More Education Does Make You Happier – Unless You Are Unemployed," SOEPpapers on Multidisciplinary Panel Data Research 1192, DIW Berlin, The German Socio-Economic Panel (SOEP).

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    More about this item

    Keywords

    Returns to college education; College enrollment quota; Academically marginal student; Non-pecuniary returns;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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