The US/Canada Difference in Postsecondary Educational Choice
This paper attempts to tackle the puzzle of why more Canadians choose community colleges over universities than their American counterparts, when previous research has suggested that the return to community college education is low in Canada. Using data from the Survey of Labour and Income Dynamics for Canada and the National Longitudinal Survey of Youth 79 for the US, I estimate returns to education with a trinomial selection correction using various instruments. I simulate the educational choices of Canadians who face American returns to education, and vice versa. I found that Canadians have a relatively strong incentive to choose community colleges if occupational choices are controlled for. The second finding is that Canadian universities and colleges specialize in different types of human capital. Also, my analysis confirms that the elasticity of educational attainment to tuition and fees is low. Finally, the self-selection processes in the two countries are different. More able Americans have higher educational attainment while more productive Canadians prefer going to universities but not community colleges.
|Date of creation:||10 Nov 2004|
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"Education and Self-Selection,"
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- Thomas J. Kane & Cecilia Rouse, 1993. "Labor Market Returns to Two- And Four-Year College: Is A Credit a Credit And Do Degrees Matter?," Working Papers 690, Princeton University, Department of Economics, Industrial Relations Section..
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- repec:fth:prinin:311 is not listed on IDEAS
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- Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
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- Garen, John, 1984. "The Returns to Schooling: A Selectivity Bias Approach with a Continuous Choice Variable," Econometrica, Econometric Society, vol. 52(5), pages 1199-1218, September.
- Rouse, Cecilia Elena, 1995. "Democratization or Diversion? The Effect of Community Colleges on Educational Attainment," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 217-224, April. Full references (including those not matched with items on IDEAS)
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