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Building the Stock of College-Educated Labor*

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  • Susan Dynarski

Abstract

Half of college students drop out without completing a degree. This paper establishes a causal link between college costs and degree completion. I use quasi-experimental methodology to analyze two state scholarship programs. The programs increase the share of the exposed population with a college degree by three percentage points, with stronger effects among women. A cost-benefit analysis indicates that the programs are socially efficient at rates of return to schooling as low as 5 percent. Even with the offer of free tuition, many students continue to drop out, suggesting tuition costs are not the only impediment to college completion.

Suggested Citation

  • Susan Dynarski, 2008. "Building the Stock of College-Educated Labor," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 576-610.
  • Handle: RePEc:uwp:jhriss:v:43:y:2008:i:3:p:576-610
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    Replication

    This item has been replicated by:
  • David L. Sjoquist & John V. Winters, 2012. "Building the Stock of College-Educated Labor Revisited," Journal of Human Resources, University of Wisconsin Press, vol. 47(1), pages 270-285.
  • More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Building the Stock of College-Educated Labor (JHR 2008) in ReplicationWiki

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