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The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence

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  • Eliasson, Kent

    ()
    (National Institute for Working Life)

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    Abstract

    This paper examines the effect on earnings of graduating from five different college groups. The study is based on an administrative data set unusually rich in terms of school grades, parental characteristics and other attributes. Contrary to most previous Swedish research, we find no systematic differences in estimated earnings between the college categories. This finding holds for all college graduates, for men and women separately and for graduates in two specific fields of education. The results indicate that an estimator of the earnings effects of college choice that does not properly adjust for ability is likely to be substantially biased.

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    Bibliographic Info

    Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 691.

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    Length: 34 pages
    Date of creation: 11 Sep 2006
    Date of revision:
    Handle: RePEc:hhs:umnees:0691

    Contact details of provider:
    Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
    Phone: 090 - 786 61 42
    Fax: 090 - 77 23 02
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    Web page: http://www.econ.umu.se/
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    Keywords: College choice; ability; earnings; selection on observables;

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    Cited by:
    1. Suhonen, Tuomo, 2013. "Are there returns from university location in a state-funded university system?," Regional Science and Urban Economics, Elsevier, vol. 43(3), pages 465-478.
    2. Eliasson, Kent, 2006. "How Robust is the Evidence on the Returns to College Choice? Results Using Swedish Administrative Data," UmeÃ¥ Economic Studies 692, Umeå University, Department of Economics.
    3. Eliasson, Kent, 2006. "College Choice And Earnings Among University Graduates In Sweden," UmeÃ¥ Economic Studies 693, Umeå University, Department of Economics.

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