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Returns to University Quality in Australia: A Two-Stage Analysis

Author

Listed:
  • Carroll, David

    (UNSW Canberra)

  • Heaton, Christopher

    (Macquarie University, Sydney)

  • Tani, Massimiliano

    (University of New South Wales)

Abstract

This study investigates the relationship between university quality and graduate starting salaries using pooled Australian data from the Graduate Destination survey and a two-stage estimation methodology. The results suggest that average starting salaries for young undergraduates differ significantly across universities after controlling for relevant confounding factors, though the range of university effects is fairly small in relation to other salary determinants, particularly course area. The results are robust to alternative specifications and suggest that employers generally do not place salary premia on attending a high-quality or prestigious university, at least upon workforce entry.

Suggested Citation

  • 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).
  • Handle: RePEc:iza:izadps:dp8473
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    References listed on IDEAS

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    More about this item

    Keywords

    human capital; returns to education; university choice;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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