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The US/Canada Difference in Postsecondary Educational Choice

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  • Hui, Taylor Shek-wai

Abstract

This paper attempts to tackle the puzzle of why more Canadians choose community colleges over universities than their American counterparts, when previous research has suggested that the return to community college education is low in Canada. Using data from the Survey of Labour and Income Dynamics for Canada and the National Longitudinal Survey of Youth 79 for the US, I estimate returns to education with a trinomial selection correction using various instruments. I simulate the educational choices of Canadians who face American returns to education, and vice versa. I found that Canadians have a relatively strong incentive to choose community colleges if occupational choices are controlled for. The second finding is that Canadian universities and colleges specialize in different types of human capital. Also, my analysis confirms that the elasticity of educational attainment to tuition and fees is low. Finally, the self-selection processes in the two countries are different. More able Americans have higher educational attainment while more productive Canadians prefer going to universities but not community colleges.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17995.

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Date of creation: 10 Nov 2004
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Handle: RePEc:pra:mprapa:17995

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Related research

Keywords: Returns to Education; Educational Choices; Post-secondary Education.;

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References

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  1. Rouse, Cecilia Elena, 1995. "Democratization or Diversion? The Effect of Community Colleges on Educational Attainment," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 217-24, April.
  2. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  3. Kane, Thomas J & Rouse, Cecilia Elena, 1995. "Labor-Market Returns to Two- and Four-Year College," American Economic Review, American Economic Association, vol. 85(3), pages 600-614, June.
  4. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
  5. Trost, Robert P & Lee, Lung-Fei, 1984. "Technical Training and Earnings: A Polychotomous Choice Model with Selectivity," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 151-56, February.
  6. Garen, John, 1984. "The Returns to Schooling: A Selectivity Bias Approach with a Continuous Choice Variable," Econometrica, Econometric Society, vol. 52(5), pages 1199-1218, September.
  7. Thomas J. Kane & Cecilia E. Rouse, 1993. "Labor Market Returns to Two- and Four-Year Colleges: Is a Credit a Credit and Do Degrees Matter?," NBER Working Papers 4268, National Bureau of Economic Research, Inc.
  8. Thomas J. Kane & Cecilia Rouse, 1993. "Labor Market Returns to Two- And Four-Year College: Is A Credit a Credit And Do Degrees Matter?," Working Papers 690, Princeton University, Department of Economics, Industrial Relations Section..
  9. Thomas J. Kane & Cecilia Elena Rouse, 1999. "The Community College: Educating Students at the Margin between College and Work," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 63-84, Winter.
  10. Willis, Robert J & Rosen, Sherwin, 1979. "Education and Self-Selection," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S7-36, October.
  11. James J. Heckman & Lance Lochner & Christopher Taber, 1998. "General Equilibrium Treatment Effects: A Study of Tuition Policy," NBER Working Papers 6426, National Bureau of Economic Research, Inc.
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Cited by:
  1. Joëlle Chatel-DeRepentigny & Claude Montmarquette & François Vaillancourt, 2011. "Les étudiants internationaux au Québec : état des lieux, impacts économiques et politiques publiques," CIRANO Working Papers 2011s-71, CIRANO.
  2. Hui, Taylor Shek-wai, 2004. "The “Sheepskin Effects” of Canadian Credentials," MPRA Paper 17994, University Library of Munich, Germany.

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