IDEAS home Printed from https://ideas.repec.org/a/oup/qjecon/v117y2002i4p1491-1527..html
   My bibliography  Save this article

Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables

Author

Listed:
  • Stacy Berg Dale
  • Alan B. Krueger

Abstract

Estimates of the effect of college selectivity on earnings may be biased because elite colleges admit students, in part, based on characteristics that are related to future earnings. We matched students who applied to, and were accepted by, similar colleges to try to eliminate this bias. Using the College and Beyond data set and National Longitudinal Survey of the High School Class of 1972, we find that students who attended more selective colleges earned about the same as students of seemingly comparable ability who attended less selective schools. Children from low-income families, however, earned more if they attended selective colleges.

Suggested Citation

  • Stacy Berg Dale & Alan B. Krueger, 2002. "Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1491-1527.
  • Handle: RePEc:oup:qjecon:v:117:y:2002:i:4:p:1491-1527.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1162/003355302320935089
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gordon C. Winston & Yen, I.C., 1995. "Costs, Prices, Subsidies, and Aid in U.S. Higher Education," Williams Project on the Economics of Higher Education DP-32, Department of Economics, Williams College.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. Behrman, Jere R & Rosenzweig, Mark R & Taubman, Paul, 1996. "College Choice and Wages: Estimates Using Data on Female Twins," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 672-685, November.
    4. Caroline M. Hoxby & Bridget Terry, 1999. "Explaining Rising Income and wage Inequality Among the College Educated," NBER Working Papers 6873, National Bureau of Economic Research, Inc.
    5. Henry I. Braun & Ted H. Szatrowski, 1984. "The Scale-Linkage Algorithm: Construction of a Universal Criterion Scale for Families of Institutions," Journal of Educational and Behavioral Statistics, , vol. 9(4), pages 311-330, December.
    6. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 37-64, October.
    7. Daniel, Kermit & Black, Dan & Smith, Jeffrey A., 1997. "College Quality and the Wages of Young Men," UWO Department of Economics Working Papers 9707, University of Western Ontario, Department of Economics.
    8. van der Klaauw, Wilbert, 1997. "A Regression-Discontinuity Evaluation of the Effect of Financial Aid Offers on College Enrollment," Working Papers 97-10, C.V. Starr Center for Applied Economics, New York University.
    9. Berhman, J-R & Kletzer, L & Constantine, J & McPherson, M & Schapiro, M-O, 1996. "The Impact of College Quality on Wages : Are There Differences Among Demographic Groups?," Williams Project on the Economics of Higher Education DP-38, Department of Economics, Williams College.
    10. Dominic J. Brewer & Eric Eide & Ronald G. Ehrenberg, 1996. "Does It Pay To Attend An Elite Private College? Cross Cohort Evidence on the Effects of College Quality on Earnings," NBER Working Papers 5613, National Bureau of Economic Research, Inc.
    11. Terence J. Wales, 1973. "The Effect of College Quality on Earnings: Results from the N B E R-Thorndike Data," Journal of Human Resources, University of Wisconsin Press, vol. 8(3), pages 306-317.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eliasson, Kent, 2006. "The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence," Umeå Economic Studies 691, Umeå University, Department of Economics.
    2. Kermit Daniel & Dan Black & Jeffery Smith, 1996. "College Characteristics and the Wages of Young Women," HEW 9604002, University Library of Munich, Germany.
    3. Eliasson, Kent, 2006. "How Robust is the Evidence on the Returns to College Choice? Results Using Swedish Administrative Data," Umeå Economic Studies 692, Umeå University, Department of Economics.
    4. Eliasson, Kent, 2006. "College Choice And Earnings Among University Graduates In Sweden," Umeå Economic Studies 693, Umeå University, Department of Economics.
    5. Hilmer, Michael J., 2001. "A comparison of alternative specifications of the college attendance equation with an extension to two-stage selectivity-correction models," Economics of Education Review, Elsevier, vol. 20(3), pages 263-278, June.
    6. Christopher Ferrall & Julian Betts & Ross Finnie, 2006. "The Role Of University Characteristics In Determining Post-graduation Outcomes: Panel Evidence From Three Recent Canadian Cohorts," Working Paper 1055, Economics Department, Queen's University.
    7. Kermit Daniel & Dan Black & Jeffery Smith, 1996. "College Quality and the Wages of Young Men," HEW 9604001, University Library of Munich, Germany.
    8. Monks, James, 2000. "The returns to individual and college characteristics: Evidence from the National Longitudinal Survey of Youth," Economics of Education Review, Elsevier, vol. 19(3), pages 279-289, June.
    9. Dominic J. Brewer & Eric Eide & Ronald G. Ehrenberg, 1996. "Does It Pay To Attend An Elite Private College? Cross Cohort Evidence on the Effects of College Quality on Earnings," NBER Working Papers 5613, National Bureau of Economic Research, Inc.
    10. Ferrall, Christopher & Betts, Julian & Finnie, Ross, 2007. "L'incidence des caracteristiques d'une universite sur les resultats professionnels apres le diplome : temoignages de trois cohortes canadiennes recemment diplomees," Direction des études analytiques : documents de recherche 2007292f, Statistics Canada, Direction des études analytiques.
    11. repec:dau:papers:123456789/4924 is not listed on IDEAS
    12. Lorraine Dearden & Barbara Sianesi, 2001. "Estimating the Returns to Education: Models, Methods and Results," CEE Discussion Papers 0016, Centre for the Economics of Education, LSE.
    13. Long, Mark C., 2010. "Changes in the returns to education and college quality," Economics of Education Review, Elsevier, vol. 29(3), pages 338-347, June.
    14. Caroline M. Hoxby, 2009. "The Changing Selectivity of American Colleges," Journal of Economic Perspectives, American Economic Association, vol. 23(4), pages 95-118, Fall.
    15. Grossman, Michael, 2006. "Education and Nonmarket Outcomes," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 10, pages 577-633, Elsevier.
    16. Albert Saiz & Elena Zoido, 2002. "The returns to speaking a second language," Working Papers 02-16, Federal Reserve Bank of Philadelphia.
    17. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 99-124.
    18. Berhman, J-R & Kletzer, L & Constantine, J & McPherson, M & Schapiro, M-O, 1996. "The Impact of College Quality on Wages : Are There Differences Among Demographic Groups?," Williams Project on the Economics of Higher Education DP-38, Department of Economics, Williams College.
    19. NAKAMURO Makiko & INUI Tomohiko, 2013. "The Returns to College Quality in Japan: Does Your College Choice Affect Your Earnings?," ESRI Discussion paper series 306, Economic and Social Research Institute (ESRI).
    20. Mariana Alfonso & Juan Carlos Calcagno, 2007. "Matriculación de minorías en universidades públicas de selectividad diversa, bajo distintos regímenes de admisión: El caso de Texas," Research Department Publications 4543, Inter-American Development Bank, Research Department.
    21. Long, Mark C., 2008. "College quality and early adult outcomes," Economics of Education Review, Elsevier, vol. 27(5), pages 588-602, October.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:qjecon:v:117:y:2002:i:4:p:1491-1527.. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press or Christopher F. Baum (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.