The Context-Bound University Selectivity Premium

Joniada Milla

No 11025, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper I present a selective survey of the empirical literature on wage premium to university selectivity focusing mainly on the context of the country under analysis and the identification strategies employed. I then estimate the wage premium to university selectivity using Canadian data and two popular methods to correct for non-random selection in universities of different quality: matching methods and instrumental variables (IV). I estimate a wage premium of 7% using the matching estimator, and a premium of 14.8% using the IV estimator for alumni of selective Canadian universities 4–6 years after graduation. My findings are in line with the literature on countries with a moderately differentiated higher education system that has low variation in tuition fees and is well supported by public funds.

Keywords: university selectivity; wage premium; context (search for similar items in EconPapers)
JEL-codes: C21 I23 J30 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2017-09
New Economics Papers: this item is included in nep-edu and nep-lma
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Citations: View citations in EconPapers (2)

Published - published in: Review of Economic Analysis, 2018, 10, 313 - 349 [open access]

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