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College choice and subsequent earnings. Results using Swedish sibling data

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  • Lindahl, Lena

    () (Swedish Institute for Social Research, Stockholm University)

  • Regnér, Håkan

    () (The Swedish Confederation of Professional Associations (SACO))

Abstract

We use data on 19 000 siblings to investigate whether earnings vary among students who graduated from different colleges in Sweden. We run separate within-family regressions for whole siblings, sisters and brothers. The results show that earnings vary significantly among students who have graduated from different colleges. The cross-sectional estimates are up to twice the within-family estimates, showing that a regression estimator of college effects that does not adjust properly for family characteristics will overestimate the earnings premium of college type as well as the differences in earnings after graduation from different colleges. There is a significant relationship between college type and earnings, even when we control for area of residence after college education. The paper also examines the extent to which differences among colleges, in the proportion of teachers with doctoral degrees, explain the differences in earnings premium. We find that the earnings premium of college type becomes insignificant when adding the proportion of teachers with doctoral degrees to the analysis.

Suggested Citation

  • Lindahl, Lena & Regnér, Håkan, 2003. "College choice and subsequent earnings. Results using Swedish sibling data," Working Paper Series 4/2003, Stockholm University, Swedish Institute for Social Research.
  • Handle: RePEc:hhs:sofiwp:2003_004
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    1. Orley Ashenfelter & David J. Zimmerman, 1997. "Estimates Of The Returns To Schooling From Sibling Data: Fathers, Sons, And Brothers," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 1-9, February.
    2. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366 Elsevier.
    3. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier.
    4. Altonji, Joseph G & Dunn, Thomas A, 1996. "Using Siblings to Estimate the Effect of School Quality on Wages," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 665-671, November.
    5. 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.
    6. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 37-64, October.
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