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Does it pay to attend a prestigious university?

Author

Listed:
  • Arnaud Chevalier
  • Gavan Conlon

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.

Suggested Citation

  • Arnaud Chevalier & Gavan Conlon, 2003. "Does it pay to attend a prestigious university?," Working Papers 200320, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:200320
    as

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    File URL: http://hdl.handle.net/10197/1263
    File Function: First version, 2003
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    References listed on IDEAS

    as
    1. John Ermisch & Marco Francesconi, 2000. "Educational Choice, Families, and Young People's Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 35(1), pages 143-176.
    2. 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.
    3. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    4. Belfield, C. R. & Fielding, A., 2001. "Measuring the relationship between resources and outcomes in higher education in the UK," Economics of Education Review, Elsevier, vol. 20(6), pages 589-602, December.
    5. Colm Harmon & Ian Walker & Niels Westergaard-Nielsen (ed.), 2001. "Education and Earnings in Europe," Books, Edward Elgar Publishing, number 2237.
    6. Daniel, Kermit & Black, Dan & Smith, Jeffrey A., 1997. "College Quality and the Wages of Young Men," University of Western Ontario, Departmental Research Report Series 9707, University of Western Ontario, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Higher education quality; Tuition fees; Education; Higher--Economic aspects; Wages--Effect of education on; Education; Higher--Finance;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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