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College quality, students performance and labor market outcomes

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  • Mattos, Enlinson
  • Bacalhau, Priscilla
  • Ponczek, Vladimir

Abstract

This paper decomposes the effect of college’s quality signalling on former students’ early labor market outcomes. We propose a new measure of the signal for college quality: the performance of the previous cohort that has graduated three years before the individual in the same institution and major. Using a unique administrative educational data set matched with the employer-employee data for Brazilian formal firms we are able to identify that an increase of 1 percentage point in the signal variable is related to up to 0.42% larger probability of being employed in the formal sector and an increase of up to 0.4% in the early career wage. We also investigate heterogeneity returns by gender, individual’s prior working experience and field of education. We control for both individual and institutional performance levels.

Suggested Citation

  • Mattos, Enlinson & Bacalhau, Priscilla & Ponczek, Vladimir, 2023. "College quality, students performance and labor market outcomes," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 41(2), April.
    • Handle: RePEc:sbe:breart:v:41:y:2023:i:2:a:85461
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