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The Context-Bound University Selectivity Premium

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  • Milla, Joniada

    (Saint Mary’s University)

Abstract

In this paper I present a selective survey of the empirical literature on wage premium to university selectivity focusing mainly on the context of the country under analysis and the identification strategies employed. I then estimate the wage premium to university selectivity using Canadian data and two popular methods to correct for non-random selection in universities of different quality: matching methods and instrumental variables (IV). I estimate a wage premium of 7% using the matching estimator, and a premium of 14.8% using the IV estimator for alumni of selective Canadian universities 4–6 years after graduation. My findings are in line with the literature on countries with a moderately differentiated higher education system that has low variation in tuition fees and is well supported by public funds.

Suggested Citation

  • Milla, Joniada, 2017. "The Context-Bound University Selectivity Premium," IZA Discussion Papers 11025, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11025
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    Cited by:

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    2. Andrew Leigh, 2021. "Australian Mobility Report Cards: Which Universities Admit the Most Disadvantaged Students?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(3), pages 331-342, September.

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    More about this item

    Keywords

    university selectivity; wage premium; context;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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