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Does It Pay to Attend a Prestigious University?

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Author Info
Chevalier, Arnaud () (University College Dublin, London School of Economics and IZA Bonn)
Conlon, Gavan (London School of Economics)

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Abstract

This paper provides evidence of heterogeneity in the returns to higher education in the UK. Attending the most prestigious universities leads to a wage premium of up to 6% for males. The rise in participation in higher education also led to a greater sorting of students and an increase in the returns to quality. These results somehow justify the recent introduction of top-up fees. Additionally, identification strategy matters and OLS estimates may be severely biased. However, our estimates, based on propensity score matching, are imprecise due to the thinness of the common support.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 848.

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Length: 36 pages
Date of creation: Aug 2003
Date of revision:
Handle: RePEc:iza:izadps:dp848

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Related research
Keywords: higher education quality; tuition fees;

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Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
I22 - Health, Education, and Welfare - - Education - - - Educational Finance

This paper has been announced in the following NEP Reports:

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  1. Wiji Arulampalam & Robin A. Naylor & Jeremy Smith, 2005. "Doctor Who? Who Gets Admission Offers in UK Medical Schools," IZA Discussion Papers 1775, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Julia Varga, 2003. "The Role of Labour Market Expectations and Admission Probabilities in Students' Application Decisions on Higher Education: the case of Hungary," Budapest Working Papers on the Labour Market 0308, Institute of Economics, Hungarian Academy of Sciences. [Downloadable!]
    Other versions:
  3. Ireland, Norman & Naylor, Robin A. & Smith, Jeremy & Telhaj, Shqiponja, 2009. "Educational Returns, ability composition and cohort effects : theory and evidence for cohorts of early-career UK graduates," The Warwick Economics Research Paper Series (TWERPS) 906, University of Warwick, Department of Economics. [Downloadable!]
    Other versions:
  4. 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. [Downloadable!]
  5. Massimiliano Bratti, 2006. "Social Class and Undergraduate Degree Subject in the UK," IZA Discussion Papers 1979, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Eliasson, Kent, 2006. "College Choice And Earnings Among University Graduates In Sweden," UmeÃ¥ Economic Studies 693, Umeå University, Department of Economics. [Downloadable!]
  7. Sloane, Peter J. & O'Leary, Nigel C., 2004. "The Return to a University Education in Great Britain," IZA Discussion Papers 1199, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Massimiliano Bratti & Robin Naylor & Jeremy Smith, 2005. "Variations in the Wage Returns to a First Degree: Evidence from the British Cohort Study 1970," IZA Discussion Papers 1631, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. Eliasson, Kent, 2006. "The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence," UmeÃ¥ Economic Studies 691, Umeå University, Department of Economics. [Downloadable!]
  10. Seamus McGuinness, 2005. "How Biased are the Estimated Wage Impacts of Overeducation? A Propensity Score Matching Approach," Working Papers ERINI 7, Economic Research Institute of Northern Ireland. [Downloadable!]
    Other versions:
  11. Bratti, Massimiliano & Naylor, Robin & Smith, Jeremy, 2007. "Different returns to different degrees? Evidence from the British Cohort Study 1970," The Warwick Economics Research Paper Series (TWERPS) 783, University of Warwick, Department of Economics. [Downloadable!]
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