College quality, students performance and labor market outcomes

Enlinson Mattos, Priscilla Bacalhau and Vladimir Ponczek

Brazilian Review of Econometrics, 2023, vol. 41, issue 2

Abstract: This paper decomposes the effect of college’s quality signalling on former students’ early labor market outcomes. We propose a new measure of the signal for college quality: the performance of the previous cohort that has graduated three years before the individual in the same institution and major. Using a unique administrative educational data set matched with the employer-employee data for Brazilian formal firms we are able to identify that an increase of 1 percentage point in the signal variable is related to up to 0.42% larger probability of being employed in the formal sector and an increase of up to 0.4% in the early career wage. We also investigate heterogeneity returns by gender, individual’s prior working experience and field of education. We control for both individual and institutional performance levels.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sbe:breart:v:41:y:2023:i:2:a:85461

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