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The Context-Bound University Selectivity Premium

Listed author(s):
  • Milla, Joniada

    ()

    (Saint Mary’s University)

Registered author(s):

    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.

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    File URL: http://ftp.iza.org/dp11025.pdf
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    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 11025.

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    Length: 34 pages
    Date of creation: Sep 2017
    Handle: RePEc:iza:izadps:dp11025
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