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The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence

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  • Eliasson, Kent

    () (National Institute for Working Life)

Abstract

This paper examines the effect on earnings of graduating from five different college groups. The study is based on an administrative data set unusually rich in terms of school grades, parental characteristics and other attributes. Contrary to most previous Swedish research, we find no systematic differences in estimated earnings between the college categories. This finding holds for all college graduates, for men and women separately and for graduates in two specific fields of education. The results indicate that an estimator of the earnings effects of college choice that does not properly adjust for ability is likely to be substantially biased.

Suggested Citation

  • Eliasson, Kent, 2006. "The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence," Umeå Economic Studies 691, Umeå University, Department of Economics.
  • Handle: RePEc:hhs:umnees:0691
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    Cited by:

    1. Suhonen, Tuomo, 2013. "Are there returns from university location in a state-funded university system?," Regional Science and Urban Economics, Elsevier, vol. 43(3), pages 465-478.
    2. Eliasson, Kent, 2006. "How Robust is the Evidence on the Returns to College Choice? Results Using Swedish Administrative Data," Umeå Economic Studies 692, Umeå University, Department of Economics.
    3. Eliasson, Kent, 2006. "College Choice And Earnings Among University Graduates In Sweden," Umeå Economic Studies 693, Umeå University, Department of Economics.

    More about this item

    Keywords

    College choice; ability; earnings; selection on observables;

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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