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Estimating The Payoff To Attending A More Selective College: An Application Of Selection On Observables And Unobservables

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Stacy Berg Dale
Alan B. Krueger

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Abstract

Estimates of the effect of college selectivity on earnings may be biased because elite colleges admit students, in part, based on characteristics that are related to future earnings. We matched students who applied to, and were accepted by, similar colleges to try to eliminate this bias. Using the College and Beyond data set and National Longitudinal Survey of the High School Class of 1972, we find that students who attended more selective colleges earned about the same as students of seemingly comparable ability who attended less selective schools. Children from low-income families, however, earned more if they attended selective colleges. © 2001 the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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Publisher Info
Article provided by MIT Press in its journal The Quarterly Journal of Economics.

Volume (Year): 117 (2002)
Issue (Month): 4 (November)
Pages: 1491-1527
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Handle: RePEc:tpr:qjecon:v:117:y:2002:i:4:p:1491-1527

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  1. Daniel, K. & Black, D. & Smith, J., 1997. "College Quality and the Wages of Young Men," UWO Department of Economics Working Papers 9707, University of Western Ontario, Department of Economics.
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  2. Berhman, J-R & Kletzer, L & Constantine, J & McPherson, M & Schapiro, M-O, 1996. "The Impact of College Quality on Wages : Are There Differences Among Demographic Groups?," Williams Project on the Economics of Higher Education 38, Department of Economics, Williams College.
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  4. Dominic J. Brewer & Eric Eide & Ronald G. Ehrenberg, 1996. "Does It Pay To Attend An Elite Private College? Cross Cohort Evidence on the Effects of College Quality on Earnings," NBER Working Papers 5613, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Behrman, Jere R & Rosenzweig, Mark R & Taubman, Paul, 1996. "College Choice and Wages: Estimates Using Data on Female Twins," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 672-85, November. [Downloadable!] (restricted)
  6. Caroline M. Hoxby & Bridget Terry, 1999. "Explaining Rising Income and wage Inequality Among the College Educated," NBER Working Papers 6873, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Wise, David A, 1975. "Academic Achievement and Job Performance," American Economic Review, American Economic Association, vol. 65(3), pages 350-66, June. [Downloadable!] (restricted)
  8. van der Klaauw, Wilbert, 1997. "A Regression-Discontinuity Evaluation of the Effect of Financial Aid Offers on College Enrollment," Working Papers 97-10, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  9. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S37-64, October. [Downloadable!] (restricted)
  10. Winston, G.C. & Yen, I.C., 1995. "Costs, Prices, Subsidies, and Aid in U.S. Higher Education," Williams Project on the Economics of Higher Education 32, Department of Economics, Williams College.
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