IDEAS home Printed from https://ideas.repec.org/p/hhs/uulswp/2010_009.html
   My bibliography  Save this paper

College Achievement and Earnings

Author

Listed:
  • Gemus, Jonathan

    () (Uppsala Center for Labor Studies)

Abstract

I study the size and sources of the monetary return to college achievement as measured by cumulative Grade Point Average (GPA). I rst present evidence that the return to achievement is large and statistically signi cant. I nd, however, that this masks variation in the return across di erent groups of people. In particular, there is no relationship between GPA and earnings for graduate degree holders but a large and positive relationship for people without a graduate degree. To reconcile these results, I develop a model where students of di ering and initially uncertain ability levels choose e ort level in college and whether to earn a graduate degree. College achievement and graduate attainment are allowed to increase human capital and be used by employers to screen workers. In the separating equilibrium studied, workers who earn a graduate degree can e ectively signal high productivity to employers. As a result, employers use undergraduate GPA-a noisy signal of productivity-to screen only the workers who do not hold a graduate degree. Viewing the empirical results through the lens of this equilibrium, the zero GPA-earnings relationship for graduate degree holders and the positive and large relationship for people without a graduate degree suggests that most of the return to achievement net of graduate educational attainment is driven by sorting.

Suggested Citation

  • Gemus, Jonathan, 2010. "College Achievement and Earnings," Working Paper Series, Center for Labor Studies 2010:9, Uppsala University, Department of Economics.
  • Handle: RePEc:hhs:uulswp:2010_009
    as

    Download full text from publisher

    File URL: http://www.ucls.nek.uu.se/digitalAssets/136/136466_20109.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Insler & Jimmy Karam, 2016. "Do Sports Crowd Out Books? The Impact of Intercollegiate Athletic Participation on Grades," Departmental Working Papers 50, United States Naval Academy Department of Economics.

    More about this item

    Keywords

    keywords are Schooling Costs; Educational Attainment; Financial Aid Policies;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:uulswp:2010_009. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katarina Grönvall). General contact details of provider: http://edirc.repec.org/data/nekuuse.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.