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College choice and subsequent earnings. Results using Swedish sibling data

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  • Lindahl, Lena

    ()
    (Swedish Institute for Social Research, Stockholm University)

  • Regnér, Håkan

    ()
    (The Swedish Confederation of Professional Associations (SACO))

Abstract

We use data on 19 000 siblings to investigate whether earnings vary among students who graduated from different colleges in Sweden. We run separate within-family regressions for whole siblings, sisters and brothers. The results show that earnings vary significantly among students who have graduated from different colleges. The cross-sectional estimates are up to twice the within-family estimates, showing that a regression estimator of college effects that does not adjust properly for family characteristics will overestimate the earnings premium of college type as well as the differences in earnings after graduation from different colleges. There is a significant relationship between college type and earnings, even when we control for area of residence after college education. The paper also examines the extent to which differences among colleges, in the proportion of teachers with doctoral degrees, explain the differences in earnings premium. We find that the earnings premium of college type becomes insignificant when adding the proportion of teachers with doctoral degrees to the analysis.

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Bibliographic Info

Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number 4/2003.

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Length: 23 pages
Date of creation: 01 Apr 2003
Date of revision:
Handle: RePEc:hhs:sofiwp:2003_004

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  1. Orley Ashenfelter & David Zimmerman, 1993. "Estimates of the Return to Schooling From Sibling Data: Fathers, Sons and Brothers," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 697, Princeton University, Department of Economics, Industrial Relations Section..
  2. 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.
  3. 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.
  4. Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 780, Princeton University, Department of Economics, Industrial Relations Section..
  5. 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.
  6. 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.
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Cited by:
  1. Zara Daghbashyan & Björn Hårsman, 2014. "University choice and entrepreneurship," Small Business Economics, Springer, Springer, vol. 42(4), pages 729-746, April.
  2. Stacy Dale & Alan B. Krueger, 2011. "Estimating the Return to College Selectivity Over the Career Using Administrative Earning Data," Mathematica Policy Research Reports, Mathematica Policy Research 6922, Mathematica Policy Research.
  3. Eliasson, Kent, 2006. "How Robust is the Evidence on the Returns to College Choice? Results Using Swedish Administrative Data," UmeÃ¥ Economic Studies, UmeÃ¥ University, Department of Economics 692, Umeå University, Department of Economics.
  4. Suhonen, Tuomo, 2013. "Are there returns from university location in a state-funded university system?," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 43(3), pages 465-478.
  5. 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.
  6. 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, Swedish Institute for Social Research 4/2007, Swedish Institute for Social Research.
  7. 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.
  8. 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.
  9. Eliasson, Kent, 2006. "The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence," UmeÃ¥ Economic Studies, UmeÃ¥ University, Department of Economics 691, Umeå University, Department of Economics.
  10. 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.
  11. Grove, Wayne A. & Hussey, Andrew, 2014. "Returns to MBA quality: Pecuniary and non-pecuniary returns to peers, faculty, and institution quality," Labour Economics, Elsevier, Elsevier, vol. 26(C), pages 43-54.
  12. 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.
  13. 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.
  14. 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.
  15. Eliasson, Kent, 2006. "College Choice And Earnings Among University Graduates In Sweden," UmeÃ¥ Economic Studies, UmeÃ¥ University, Department of Economics 693, Umeå University, Department of Economics.

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