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The Role of University Characteristics in Determining Post-Graduation Outcomes: Panel Evidence from Three Recent Canadian Cohorts

Author

Listed:
  • Julian Betts

    () (UC-San Diego)

  • Christopher Ferrall

    () (Queen's University)

  • Ross Finnie

    () (Queen’s University and Statistics Canada)

Abstract

This paper models earnings of male and female Bachelor’s graduates in Canada five years after graduation. Using a university fixed-effect approach, the research finds evidence of significant (fixed) variations in earnings among graduates from different universities. Within universities changes over time in various characteristics are correlated with changes in graduates’ earnings. Increases in undergraduate enrollment are associated with declines in subsequent earnings for graduates, suggesting crowding out. For men, but not women, increases in the professor/student ratio are associated with meaningful gains in students’ subsequent earnings. Models that do not condition on a student’s major show increased effects of changes in a university’s characteristics, with estimated effects rising up to almost two-fold. For women in particular, changes in several university characteristics are strongly associated with changes in women’s choice of major. Changes in university characteristics are not strongly related to the probability of employment five years after graduation.

Suggested Citation

  • Julian Betts & Christopher Ferrall & Ross Finnie, 2006. "The Role of University Characteristics in Determining Post-Graduation Outcomes: Panel Evidence from Three Recent Canadian Cohorts," Working Papers 1055, Queen's University, Department of Economics.
  • Handle: RePEc:qed:wpaper:1055
    as

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    File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_1055.pdf
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    References listed on IDEAS

    as
    1. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 99-124.
    2. Behrman, Jere R & Rosenzweig, Mark R & Taubman, Paul, 1996. "College Choice and Wages: Estimates Using Data on Female Twins," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 672-685, November.
    3. Bedard, Kelly, 2003. "School quality and the distribution of male earnings in Canada," Economics of Education Review, Elsevier, vol. 22(4), pages 395-407, August.
    4. Monks, James, 2000. "The returns to individual and college characteristics: Evidence from the National Longitudinal Survey of Youth," Economics of Education Review, Elsevier, vol. 19(3), pages 279-289, June.
    5. Stacy Berg Dale & Alan B. Krueger, 2002. "Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1491-1527.
    6. Dominic J. Brewer & Eric Eide & Ronald G. Ehrenberg, 1996. "Does It Pay To Attend An Elite Private College? Cross Cohort Evidence on the Effects of College Quality on Earnings," NBER Working Papers 5613, National Bureau of Economic Research, Inc.
    7. Jeff Grogger & Eric Eide, 1995. "Changes in College Skills and the Rise in the College Wage Premium," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 280-310.
    8. Loury, Linda Datcher & Garman, David, 1995. "College Selectivity and Earnings," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 289-308, April.
    9. Dominic J. Brewer & Eric R. Eide & Ronald G. Ehrenberg, 1999. "Does It Pay to Attend an Elite Private College? Cross-Cohort Evidence on the Effects of College Type on Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 34(1), pages 104-123.
    10. Kermit Daniel & Dan Black & Jeffery Smith, 1996. "College Quality and the Wages of Young Men," HEW 9604001, EconWPA.
    11. Fox, Marc, 1993. "Is it a good investment to attend an elite private college?," Economics of Education Review, Elsevier, vol. 12(2), pages 137-151, June.
    12. Frenette, Marc, 2007. "Do Universities Benefit Local Youth? Evidence from University and College Participation, and Graduate Earnings Following the Creation of a New University," Analytical Studies Branch Research Paper Series 2006283e, Statistics Canada, Analytical Studies Branch.
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    Cited by:

    1. Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2006. "The Short- and Long-Term Career Effects of Graduating in a Recession: Hysteresis and Heterogeneity in the Market for College Graduates," NBER Working Papers 12159, National Bureau of Economic Research, Inc.
    2. Betts, Julian & Ferrall, Christopher & Finnie, Ross, 2000. "Passage des etudes au travail chez les diplomes des universites canadiennes : duree de recherche d'un premier emploi, 1982-1990," Direction des etudes analytiques : documents de recherche 2000141f, Statistics Canada, Direction des etudes analytiques.
    3. Betts, Julian & Ferrall, Christopher & Finnie, Ross, 2000. "The Transition to Work for Canadian University Graduates: Time to First Job, 1982-1990," Analytical Studies Branch Research Paper Series 2000141e, Statistics Canada, Analytical Studies Branch.
    4. Carroll, David & Heaton, Christopher & Tani, Massimiliano, 2014. "Returns to University Quality in Australia: A Two-Stage Analysis," IZA Discussion Papers 8473, Institute for the Study of Labor (IZA).

    More about this item

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • I2 - Health, Education, and Welfare - - Education

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