Make Your Own Luck: The Wage Gains from Starting College in a Bad Economy
Guido Matias Cortes () and
Jacopo Mazza ()
CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague
Using data for nearly 40 cohorts of American college graduates and exploiting regional variation in economic conditions, we show robust evidence of a positive relationship between the unemployment rate at the time of college enrollment and subsequent annual earnings, particularly for women. This positive relationship cannot be explained by selection into employment or by economic conditions at the time of graduation. Changes in major field of study account for only about 10% of the observed earnings gains. The results are consistent with intensified effort exerted by students who experience bad economic times at the beginning of their studies.
Keywords: business cycle; higher education; cohort effects (search for similar items in EconPapers)
JEL-codes: E32 I23 J24 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-lma, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cer:papers:wp698
Access Statistics for this paper
More papers in CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Vasiljevova ().