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Impact of a Tertiary Eligibility Threshold on Tertiary Education and Earnings: A Discontinuity Approach

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  • Nordin , Martin

    (Department of Economics, Lund University)

  • Heckley , Gawain

    (Health Economics Unit, Lund University)

  • Gerdtham , Ulf-G

    (Department of Economics, Lund University)

Abstract

This study evaluates the impact of achieving tertiary eligibility in upper-secondary education on tertiary education and earnings in Sweden. Using a regression discontinuity design, we estimate the impact of tertiary eligibility and show that it has a substantial impact on the probability of enrolling in tertiary education. For students who achieve tertiary eligibility, the probability of enrolling in tertiary education increases by around 15 and 7 percentage points for an academic and vocational track, respectively. This implies (before age 30) around 8 percent higher earnings (at the intensive margin) for men on an academic track, while for women on an academic track it increases the probability of having positive incomes (the extensive margin) by around 3 percent. Thus, we conclude that (academic) students at the margin of eligibility for enrolling in tertiary education receive a substantial tertiary education payoff.

Suggested Citation

  • Nordin , Martin & Heckley , Gawain & Gerdtham , Ulf-G, 2017. "Impact of a Tertiary Eligibility Threshold on Tertiary Education and Earnings: A Discontinuity Approach," Working Papers 2017:12, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2017_012
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    Cited by:

    1. Gawain Heckley & Martin Nordin & Ulf‐G. Gerdtham, 2022. "The health returns of attending university for the marginally eligible student," Health Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 877-903, May.
    2. Heckley, Gawain & Nordin, Martin & Gerdtham, Ulf-G., 2018. "Could Easier Access to University Improve Health and Reduce Health Inequalities?," Working Papers 2018:5, Lund University, Department of Economics.

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    More about this item

    Keywords

    Tertiary education; upper-secondary education; earnings; eligibility; regression discontinuity design;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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