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College Selectivity and Earnings

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  • Loury, Linda Datcher
  • Garman, David

Abstract

This article shows that college performance and selectivity have significant effects on earnings. It suggests that work that does not include college performance overstates the effect of college selectivity for whites and understates it for blacks. While the size of the effect of college selectivity for blacks is larger than for whites, the large black earnings gain is offset for students whose own Scholastic Aptitude Test scores are significantly below the median of the college they attend. This results from the lower probability of graduation for 'mismatched' blacks and the subsequently lower earnings for those who fail to complete college. Copyright 1995 by University of Chicago Press.

Suggested Citation

  • 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.
    • Handle: RePEc:ucp:jlabec:v:13:y:1995:i:2:p:289-308
    DOI: 10.1086/298375
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    References listed on IDEAS

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    1. Paul J. Taubman & Terence Wales, 1974. "Earnings: Higher Education, Mental Ability, and Screening," NBER Chapters, in: Higher Education and Earnings: College as an Investment and Screening Device, pages 1-24, National Bureau of Economic Research, Inc.
    2. Wise, David A, 1975. "Academic Achievement and Job Performance," American Economic Review, American Economic Association, vol. 65(3), pages 350-366, June.
    3. Paul J. Taubman & Terence Wales, 1974. "The Human-Capital Approach to Higher Education," NBER Chapters, in: Higher Education and Earnings: College as an Investment and Screening Device, pages 25-36, National Bureau of Economic Research, Inc.
    4. Ethel B. Jones & John D. Jackson, 1990. "College Grades and Labor Market Rewards," Journal of Human Resources, University of Wisconsin Press, vol. 25(2), pages 253-266.
    5. Greg J. Duncan & Saul D. Hoffman, 1983. "A New Look at the Causes of the Improved Economic Status of Black Workers," Journal of Human Resources, University of Wisconsin Press, vol. 18(2), pages 268-282.
    6. 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.
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