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The Canadian University Selectivity Premium

Author

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  • Joniada Milla

    (Saint Mary’s University)

Abstract

"This paper surveys the recent empirical literature on wage premium to university selectivity, and provides new evidence to this literature on a country such as Canada that has a distinct higher education system from those already analyzed. I estimate the wage premium to university selectivity using Canadian data and two popular methods to correct for non-random selection in universities of different quality: matching methods and instrumental variables (IV). I estimate a wage premium of 7% using the matching estimator, and a premium of 14.8% using the IV estimator for alumni of selective Canadian universities 4–6 years after graduation. My findings are in line with the literature on countries with a moderately differentiated higher education system that has low variation in tuition fees and is well supported by public funds."

Suggested Citation

  • Joniada Milla, 2018. "The Canadian University Selectivity Premium," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 10(4), pages 313-349, November.
    • Handle: RePEc:ren:journl:v:10:y:2018:i:4:p:313-349
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    File URL: https://openjournals.uwaterloo.ca/index.php/rofea/article/view/1473/1889
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    More about this item

    Keywords

    University selectivity; Wage premium; Context ;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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