Experience

Estimating the Payoff to Attending a More Selective College - Berg and Kruger (2002)

ESTIMATING THE PAYOFF TO ATTENDING A MORE SLECTIVE COLLEGE: AN APPLICATION OF SELECTION ON OBSERVABLES AND UNOBSERVABLES*

Stacy Berg and Alan B Krueger

 

Estimates of the effect of college selectivity on earnings may be biasebecause elite colleges admit students, in part, based on characteristics that are related to future earnings. We matched students who applied to, and were accepted by, similar colleges to try to eliminate this bias. Using the College andBeyond data set and National Longitudinal Survey of the High School Class of 1972, we find that students who attended more selective colleges earned about the same as students of seemingly comparable ability who attended less selectivschools. Children from low-income families, however, earned more if they attended selective colleges.

For the complete 2002 Quarterly Journal of Economics piece click here.

We'll post the 2011 follow up study next week.

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