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School Quality and the Distribution of Male Earnings in Canada

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  • Kelly Bedard

    (UC - Santa Barbara)

Abstract

Using quantile regressions, this paper provides evidence that the relationship between school quality and wages varies across points in the conditional wage distribution and educational attainment levels. Although smaller classes generally have a positive return for individuals at high quantiles, they have a negative impact at low quantiles. Similarly, while more highly paid teachers benefit drop-outs at high quantiles and graduates at low quantiles, they have a negative return for all other quantile-education groups. The results presented in this paper also suggest that the optimal school for high school graduates is likely smaller than for high school drop-outs.

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File URL: http://www.claremontmckenna.edu/rdschool/papers/1999-13.pdf
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Bibliographic Info

Paper provided by Claremont Colleges in its series Claremont Colleges Working Papers with number 1999-13.

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Handle: RePEc:clm:clmeco:1999-13

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Keywords: school quality; quantiles; wages;

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References

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  1. 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 1141-77, September.
  2. Brown, Byron W & Saks, Daniel H, 1975. "The Production and Distribution of Cognitive Skills within Schools," Journal of Political Economy, University of Chicago Press, vol. 83(3), pages 571-93, June.
  3. Kermit Daniel & Dan Black & Jeffery Smith, 1996. "College Quality and the Wages of Young Men," HEW 9604001, EconWPA.
  4. 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 231-50, May.
  5. Alan Krueger, 1997. "Experimental Estimates of Education Production Functions," Working Papers 758, Princeton University, Department of Economics, Industrial Relations Section..
  6. 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.
  7. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  8. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," NBER Working Papers 3358, National Bureau of Economic Research, Inc.
  9. James, Estelle, et al, 1989. "College Quality and Future Earnings: Where Should You Send Your Child to College?," American Economic Review, American Economic Association, vol. 79(2), pages 247-52, May.
  10. Buchinsky, Moshe, 1995. "Quantile regression, Box-Cox transformation model, and the U.S. wage structure, 1963-1987," Journal of Econometrics, Elsevier, vol. 65(1), pages 109-154, January.
  11. James Heckman & Anne Layne-Farrar & Petra Todd, 1995. "Does Measured School Quality Really Matter? An Examination of the Earnings-Quality Relationship," NBER Working Papers 5274, National Bureau of Economic Research, Inc.
  12. Loury, Linda Datcher & Garman, David, 1995. "College Selectivity and Earnings," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 289-308, April.
  13. Tsang, Mun C. & Levin, Henry M., 1985. "The economics of overeducation," Economics of Education Review, Elsevier, vol. 4(2), pages 93-104, April.
  14. Wachtel, Paul, 1976. "The Effect of Earnings of School and College Investment Expenditures," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 326-31, August.
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Cited by:
  1. Angela Lyons & Mitchell Rachlis & Erik Scherpf, 2007. "What’s in a Score? Differences in Consumers’ Credit Knowledge Using OLS and Quantile Regressions," NFI Working Papers 2007-WP-01, Indiana State University, Scott College of Business, Networks Financial Institute.
  2. Jung Hur & Yohanes E. Riyanto, 2012. "Organizational Structure and Product Market Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(3), pages 707-743, 09.
  3. 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.
  4. Chiswick, Barry R. & Le, Anh T. & Miller, Paul W., 2006. "How Immigrants Fare Across the Earnings Distribution: International Analyses," IZA Discussion Papers 2405, Institute for the Study of Labor (IZA).
  5. Julian Betts & Christopher Ferrall & Ross Finnie, 2006. "The Role of University Characteristics in Determining Post-Graduation Outcomes: Panel Evidence from Three Recent Canadian Cohorts," Working Papers 1055, Queen's University, Department of Economics.
  6. Julian Betts & Christopher Ferrall & Ross Finnie, 2013. "The Role of University Characteristics in Determining Post-Graduation Outcomes: Panel Evidence from Three Canadian Cohorts," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 81-106, May.
  7. Sansani, Shahar, 2009. "The Effects of School Quality on Long-Term Health," MPRA Paper 22189, University Library of Munich, Germany, revised Apr 2010.
  8. Kelly Bedard & William O. Brown, Jr. & Eric Helland, . "School Size and the Distribution of Test Scores," Claremont Colleges Working Papers 1999-11, Claremont Colleges.
  9. Kim, Taejong & Lee, Ju-Ho & Lee, Young, 2008. "Mixing versus sorting in schooling: Evidence from the equalization policy in South Korea," Economics of Education Review, Elsevier, vol. 27(6), pages 697-711, December.
  10. Ferrall, Christopher & Betts, Julian & Finnie, Ross, 2007. "L'incidence des caracteristiques d'une universite sur les resultats professionnels apres le diplome : temoignages de trois cohortes canadiennes recemment diplomees," Direction des etudes analytiques : documents de recherche 2007292f, Statistics Canada, Direction des etudes analytiques.

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