Increasing Returns to Education and Progress towards a College Degree
Returns to college have increased, but graduation rates have changed relatively little. Modifying a human capital model of college enrollment to endogenize time-to-graduation, we predict that higher returns to education will both speed graduation and increase enrollment. Some of those new entrants may, however, take longer to graduate. Using the 1989 and 1995 Beginning Postsecondary Studies, we employ a multinomial logit to model the association between individual and family characteristics, and five-year college outcomes: graduation, continued enrollment, and non-enrollment. Between cohort differences arise either because the characteristics of those entering college are different or because the relations between characteristics and outcomes have changed. We utilize a Oaxaca-Blinder style decomposition to distinguish between these two alternatives, attributing differences in characteristics to newly attracted students and differences in the relations between characteristics and outcomes to historically attracted students behaving differently. It is changes in behavior that explain the increased progress we observe.
|Date of creation:||Aug 2008|
|Date of revision:|
|Contact details of provider:|| Postal: Box 844000, Richmond, VA 23284-4000|
Web page: http://www.business.vcu.edu/economics
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stratton, Leslie S. & O'Toole, Dennis M. & Wetzel, James N., 2006. "Are the Factors Affecting Dropout Behavior Related to Initial Enrollment Intensity for College Undergraduates?," IZA Discussion Papers 1951, Institute for the Study of Labor (IZA).
- Lisa Barrow & Cecilia Elena Rouse, 2005.
"Do returns to schooling differ by race and ethnicity?,"
Working Paper Series
WP-05-02, Federal Reserve Bank of Chicago.
- Lisa Barrow & Cecilia Elena Rouse, 2005. "Do Returns to Schooling Differ by Race and Ethnicity?," American Economic Review, American Economic Association, vol. 95(2), pages 83-87, May.
- Lisa Barrow & Cecilia E. Rouse, 2005. "Do Returns to Schooling Differ by Race and Ethnicity?," Working Papers 11, Princeton University, Woodrow Wilson School of Public and International Affairs, Education Research Section..
- Dynarski, Susan, 2001.
"Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion,"
Working Paper Series
rwp01-034, Harvard University, John F. Kennedy School of Government.
- Susan M. Dynarski, 2003. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," American Economic Review, American Economic Association, vol. 93(1), pages 279-288, March.
- Susan M. Dynarski, 1999. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," NBER Working Papers 7422, National Bureau of Economic Research, Inc.
- Christopher Dougherty, 2005. "Why Are the Returns to Schooling Higher for Women than for Men?," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 969-988.
- Manski, Charles F., 1989. "Schooling as experimentation: a reappraisal of the postsecondary dropout phenomenon," Economics of Education Review, Elsevier, vol. 8(4), pages 305-312, August.
- Altonji, Joseph G, 1993.
"The Demand for and Return to Education When Education Outcomes Are Uncertain,"
Journal of Labor Economics,
University of Chicago Press, vol. 11(1), pages 48-83, January.
- Joseph G. Altonji, 1991. "The Demand for and Return to Education When Education Outcomes are Uncertain," NBER Working Papers 3714, National Bureau of Economic Research, Inc.
- Jaeger, David A & Page, Marianne E, 1996. "Degrees Matter: New Evidence on Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 733-40, November.
When requesting a correction, please mention this item's handle: RePEc:vcu:wpaper:0805. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oleg Korenok)
If references are entirely missing, you can add them using this form.