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High School Inputs and Labor Market Outcomes for Male Workers in Their Mid-Thirties: New Data and New Estimates from Wisconsin

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  • C. A. Olson
  • D. Ackerman
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    Abstract

    This study presents new evidence on the relationship between high school inputs measured at the time male respondents attended high school and the earnings of these same individuals when they were in their mid-thirties. To accomplish this task, we matched newly coded data on the characteristics of Wisconsin high schools in 1954–57 to the Wisconsin Longitudinal Survey. Our estimates show a significant relationship between the characteristics of teachers and the earnings of their students 17 years after graduation. Specifically, a 1 percent increase in the average teacher salary in a district increases the earnings of students by 0.33 percent. The magnitude of this effect is larger than estimates reported in previous research and many times larger than the impact of increasing parents’ income by a comparable amount.

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    Paper provided by University of Wisconsin Institute for Research on Poverty in its series Institute for Research on Poverty Discussion Papers with number 1205-00.

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    Handle: RePEc:wop:wispod:1205-00

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    1. Hanushek, E-A & Rivkin, S-G & Taylor, L-L, 1995. "Aggregation and the Estimated Effects of School Resources," RCER Working Papers 397, University of Rochester - Center for Economic Research (RCER).
    2. James Heckman & Anne Layne-Farrar & Petra Todd, 1995. "Does Measured School Quality Really Matter? An Examination of the Earnings-Quality Relationship," NBER Working Papers 5274, National Bureau of Economic Research, Inc.
    3. Breusch, T S & Pagan, A R, 1980. "The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 239-53, January.
    4. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
    5. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
    6. Russell Davidson & James G. MacKinnon, 1988. "Specification Tests Based on Artificial Regressions," Working Papers 707, Queen's University, Department of Economics.
    7. 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.
    8. Heckman, James & Layne-Farrar, Anne & Todd, Petra, 1996. "Human Capital Pricing Equations with an Application to Estimating the Effect of Schooling Quality on Earnings," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 562-610, November.
    9. Grogger, Jeff, 1996. "School Expenditures and Post-schooling Earnings: Evidence from High School and Beyond," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 628-37, November.
    10. Eric A. Hanushek, 1996. "Measuring Investment in Education," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 9-30, Fall.
    11. Betts, Julian R, 1996. "Do School Resources Matter Only for Older Workers?," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 638-52, November.
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