A question of degree: the effects of degree class on labor market outcomes

Andy Feng and Georg Graetz

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: In this paper we estimate the sorting effects of university degree class on initial labor market outcomes using a regression discontinuity design that exploits institutional rules governing the award of degrees. Consistent with anecdotal evidence, we find sizeable and significant effects for Upper Second degrees and positive but smaller effects for First Class degrees on wages. In additional results we explore differences across groups and find evidence consistent with a simple model of statistical discrimination on the basis of gender and types of degree programmes. When we split the sample by ability, we find that the signaling effects are similar in the high ability group but stronger for Upper Second degrees in the lower ability group. The evidence points to the importance of sorting in the high skills labor market.

JEL-codes: I2 J24 J31 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2013
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Citations: View citations in EconPapers (7)

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http://eprints.lse.ac.uk/51562/ Open access version. (application/pdf)

Related works:
Journal Article: A question of degree: The effects of degree class on labor market outcomes (2017)
Working Paper: A Question of Degree: The Effects of Degree Class on Labor Market Outcomes (2015)
Working Paper: A Question of Degree: The Effects of Degree Class on Labor Market Outcomes (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:51562

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