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Quantile Treatment Effects of College Quality on Earnings

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  • Rodney J. Andrews
  • Jing Li
  • Michael F. Lovenheim

Abstract

We use administrative data from Texas to estimate how graduating from a state flagship or a community college relative to a nonflagship university affects the distribution of earnings. We control for the selection of students across sectors using a rich set of observable ability and background characteristics and find evidence of substantial heterogeneity in the returns to quality. Returns increase with earnings among UT–Austin graduates but decline among Texas A&M graduates. For community colleges, returns are negative for lower earners but go to zero for higher earners. Our estimates also point to differences in the distribution of returns by race/ethnicity.

Suggested Citation

  • Rodney J. Andrews & Jing Li & Michael F. Lovenheim, 2016. "Quantile Treatment Effects of College Quality on Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 51(1), pages 200-238.
  • Handle: RePEc:uwp:jhriss:v:51:y:2016:i:1:p:200-238
    Note: DOI: 10.3368/jhr.51.1.200
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    References listed on IDEAS

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    1. Terry Long, B.Bridget, 2004. "How have college decisions changed over time? An application of the conditional logistic choice model," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 271-296.
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    5. 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.
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    Citations

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    Cited by:

    1. Leah Achdut & Elad Gutman & Idan Lipiner & Inbal Maayan & Noam Zussman, 2018. "The Wage Premium on Higher Education: Universities and Colleges," Bank of Israel Working Papers 2018.13, Bank of Israel.
    2. Andrews, Rodney J. & Imberman, Scott A. & Lovenheim, Michael F., 2020. "Recruiting and supporting low-income, high-achieving students at flagship universities," Economics of Education Review, Elsevier, vol. 74(C).
    3. Denning, Jeffrey T. & Murphy, Richard J. & Weinhardt, Felix, 2018. "Class Rank and Long-Run Outcomes," IZA Discussion Papers 11808, Institute of Labor Economics (IZA).
    4. Jeffrey T. Denning & Benjamin M. Marx & Lesley J. Turner, 2019. "ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare," American Economic Journal: Applied Economics, American Economic Association, vol. 11(3), pages 193-224, July.
    5. Suqin Ge & Elliott Isaac & Amalia Miller, 2018. "Elite Schools and Opting In: Effects of College Selectivity on Career and Family Outcomes," NBER Working Papers 25315, National Bureau of Economic Research, Inc.
    6. Luis Armona & Rajashri Chakrabarti & Michael Lovenheim, 2017. "How does for-profit college attendance affect student loans, defaults, and labor market outcomes?," Staff Reports 811, Federal Reserve Bank of New York, revised 01 Apr 2018.
    7. Bacalhau, Priscilla & Mattos, Enlinson & Ponczek, Vladimir Pinheiro, 2019. "College quality signaling and individual performance: effects on labor market outcomes after graduation," Textos para discussão 502, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    8. Liao, Wen-Chi & Zhao, Daxuan, 2019. "The selection and quantile treatment effects on the economic returns of green buildings," Regional Science and Urban Economics, Elsevier, vol. 74(C), pages 38-48.
    9. Rodney J. Andrews & John Thompson, 2017. "Earning your CAP: A Comprehensive Analysis of The University of Texas System's Coordinated Admissions Program," NBER Working Papers 23442, National Bureau of Economic Research, Inc.
    10. Motte Henrique & Oliveira Rodrigo, 2020. "The effect of class assignment on academic performance and the labour market: Evidence from a public federal university in Brazil," WIDER Working Paper Series wp2020-8, World Institute for Development Economic Research (UNU-WIDER).
    11. Francis-Tan, Andrew & Tannuri-Pianto, Maria, 2018. "Black Movement: Using discontinuities in admissions to study the effects of college quality and affirmative action," Journal of Development Economics, Elsevier, vol. 135(C), pages 97-116.
    12. Milla, Joniada, 2017. "The Context-Bound University Selectivity Premium," IZA Discussion Papers 11025, Institute of Labor Economics (IZA).
    13. Meyer, Andrew G. & Hanson, Andrew R. & Hickman, Daniel C., 2017. "Perceptions of institutional quality: Evidence of limited attention to higher education rankings," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 241-258.
    14. Nicolás de Roux & Evan Riehl, 2019. "Isolating Peer Effects in the Returns to College Selectivity," Documentos CEDE 017413, Universidad de los Andes - CEDE.
    15. Heinesen, Eskil, 2018. "Admission to higher education programmes and student educational outcomes and earnings–Evidence from Denmark," Economics of Education Review, Elsevier, vol. 63(C), pages 1-19.
    16. Delprato, Marcos & Akyeampong, Kwame, 2019. "The effect of working on students’ learning in Latin America: Evidence from the learning survey TERCE," International Journal of Educational Development, Elsevier, vol. 70(C), pages 1-1.
    17. Henrique Z. Motte & Rodrigo C. Oliveira, 2020. "The effect of class assignment on academic performance and the labour market: Evidence from a public federal university in Brazil," WIDER Working Paper Series wp-2020-8, World Institute for Development Economic Research (UNU-WIDER).

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