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The Effect of College Quality on Earnings Evidence from Sweden

Author

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  • Holmlund, Linda

    (Department of Economics, Umeå University)

Abstract

This paper examines the effect of college quality on earnings using administrative data on Swedish college students. To consider possible heterogeneity, the effects for men and women are estimated separately and quantile regression is used to determine whether the effect of college quality differs over the income distribution. The overall results suggest that the link between college quality and earnings is weak in Sweden. A small positive effect is found for individuals that are likely to work full time as well as for individuals in the upper part of the income distribution, while negative effects are found for individuals located in the middle and lower parts of the income distribution. Furthermore, controlling for region of work affects the estimated effects, indicating a correlation between choice of college quality and choice of labor market region.

Suggested Citation

  • Holmlund, Linda, 2009. "The Effect of College Quality on Earnings Evidence from Sweden," Umeå Economic Studies 781, Umeå University, Department of Economics.
    • Handle: RePEc:hhs:umnees:0781
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    Citations

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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. Zara Daghbashyan & Björn Hårsman, 2014. "University choice and entrepreneurship," Small Business Economics, Springer, vol. 42(4), pages 729-746, April.
    3. David Carroll & Chris Heaton & Massimiliano Tani, 2019. "Does It Pay to Graduate from an 'Elite' University in Australia?," The Economic Record, The Economic Society of Australia, vol. 95(310), pages 343-357, September.
    4. Tuomo Suhonen, 2014. "Quality of higher education and earnings: evidence from Finland using field-of-study-level quality measures," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(1), pages 22-44, January.
    5. Silvia Kopecny & Steffen Hillmert, 2021. "Place of study, field of study and labour-market region: What matters for wage differences among higher-education graduates?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-21, December.
    6. Triventi, Moris, 2011. "The role of higher education stratification in the reproduction of social inequality in the labour market. A comparative study of recent European graduates," MPRA Paper 35996, University Library of Munich, Germany.
    7. Joniada Milla, 2012. "University Quality and Labour Market Outcomes of Canadian Youth," Working Papers 1212, University of Guelph, Department of Economics and Finance.
    8. Carroll, David & Heaton, Christopher & Tani, Massimiliano, 2014. "Returns to University Quality in Australia: A Two-Stage Analysis," IZA Discussion Papers 8473, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    College quality; Earnings; Selection on observables;
    All these keywords.

    JEL classification:

    • 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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