Abstract:
This paper documents a dramatic increase in the college enrollment rate of women from 1955 to 1980 and asks a quantitative question: to what extent can such change be accounted for by the change in the female cohort-specific college wage premium? I develop and calibrate an overlapping generations model with discrete schooling choice. I find that changes in the life-cycle earnings differential can explain the increase in female college enrollment rate very well. Young women's changing expectations of future employment opportunity also played an important role in driving their college attendance decision from the mid 1950s to the early 1970s.