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Impact of universities in a flat hierarchy: Do degrees from top universities lead to a higher wage?

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  • Schwerter, Jakob

Abstract

The literature shows a wage premium for graduates from high quality, elite, or more selective universities. The results, however, exist for countries with a clear hierarchy of top universities, such as the US, England, and Australia. I evaluate if such an effect also exists in Germany, a country in which universities are top-performing in some but not all fields, and the general differences between universities are smaller compared to, e.g., the USA. I use the University Ranking of the Quacquarelli Symonds and a revealed preference and acceptance ranking to measure the quality of a university. Both rankings show a wage premium in IV regression in-between five and 13 percent. This effect is specially prevalent for women.

Suggested Citation

  • Schwerter, Jakob, 2020. "Impact of universities in a flat hierarchy: Do degrees from top universities lead to a higher wage?," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224583, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc20:224583
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    References listed on IDEAS

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    More about this item

    Keywords

    wage premium; ranking; revealed preferences; Germany;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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