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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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    3. 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).
    4. Jeffrey T. Denning & Richard Murphy & Felix Weinhardt, 2018. "Class Rank and Long-Run Outcomes," Discussion Papers of DIW Berlin 1761, DIW Berlin, German Institute for Economic Research.
    5. Heckman, James J. & Loughlin, Colleen P., 2021. "Athletes Greatly Benefit from Participation in Sports at the College and Secondary Level," IZA Discussion Papers 14584, Institute of Labor Economics (IZA).
    6. 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.
    7. Milla, Joniada, 2017. "The Context-Bound University Selectivity Premium," IZA Discussion Papers 11025, Institute of Labor Economics (IZA).
    8. Rodney J. Andrews & Kevin M. Stange, 2019. "Price Regulation, Price Discrimination, and Equality of Opportunity in Higher Education: Evidence from Texas," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 31-65, November.
    9. Gandil, Mikkel Høst, 2021. "Substitution Effects in College Admissions," Memorandum 3/2021, Oslo University, Department of Economics.
    10. Esteban M. Aucejo & Claudia Hupkau & Jenifer Ruiz-Valenzuela, 2020. "Where versus What: College Value-Added and Returns to Field of Study in Further Education," CVER Research Papers 030, Centre for Vocational Education Research.
    11. 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.
    12. Suqin Ge & Elliott Isaac & Amalia Miller, 2022. "Elite Schools and Opting In: Effects of College Selectivity on Career and Family Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 40(S1), pages 383-427.
    13. Armona, Luis & Chakrabarti, Rajashri & Lovenheim, Michael F., 2022. "Student debt and default: The role of for-profit colleges," Journal of Financial Economics, Elsevier, vol. 144(1), pages 67-92.
    14. Jack Mountjoy & Brent Hickman, 2020. "The Returns to College(s): Estimating Value-Added and Match Effects in Higher Education," Working Papers 2020-08, Becker Friedman Institute for Research In Economics.
    15. 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.
    16. Nicolás de Roux & Evan Riehl, 2019. "Isolating Peer Effects in the Returns to College Selectivity," Documentos CEDE 017413, Universidad de los Andes – Facultad de Economía – CEDE.
    17. 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).
    18. 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.
    19. 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.
    20. 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.
    21. Henrique Z. Motte & Rodrigo 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).
    22. 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.
    23. Naven, Matthew & Whalen, Daniel, 2022. "The signaling value of university rankings: Evidence from top 14 law schools," Economics of Education Review, Elsevier, vol. 89(C).
    24. 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).

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