Assignment 2 Research Essays

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List of articles 1. Does it pay to attend an elite private college? http://www.jstor.org/discover/10.2307/146304?sid=21105861922991&uid=3738032&uid=2&uid=4 ­ modeling choice of college type based on individual and family characteristics (ability and parental economic status) → estimate costs of attendance
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Selectivity­corrected outcomes?
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Controlling for selection effects, strong evidence of significant economics returns to attending an elite private institution → premium has increased over time
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limited evidence for college quality and labour market outcomes
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college choice determined by the net costs to attending different kinds of institutions → allow for the fact that students systematically select the college quality type they attend on the basis of the net costs they face
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large labour market premium for attending elite PRIVATE college, weaker evidence for attending an elite
PUBLIC college
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return to elite private colleges increased significantly for the 1980s cohorts to the 1972 cohort
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in the light of large tuition increases concentrated at these institutions during the past two decades → rising tuition at elite private institutions was at least partially made possible by the increasing returns to quality that took place

2. The effects on income of type of college attended http://www.nber.org/papers/w14 ­ widely felt that differences among schools are less likely to affect ultimate educational outcomes (earnings) than do differences in innate ability, family background and luck
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characteristics of teachers
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conclusion → at college level, differences in type of institution attended have highly significant effects on differences in lifetime earnings patterns of students
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controlling for individual student ability
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extra years, IQ, occupational choice 3. Does it pay to attend a prestigious university? http://papers.ssrn.com/sol3/papers.cfm?abstract_id=435300 (UK)
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Attending the most prestigious universities leads to a wage premium of up to 6% for males
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rise in participation in higher education → greater sorting of students and an increase in the returns to the quality → more polarised system
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QUESTION : COULD WAGES BE EXTRAPOLATED TO SOCIAL RETURNS AND NOT JUST
PRIVATE RETURNS FOR AN AVERAGE INDIVIDUAL
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US → higher financial returns to attending higher quality institutions
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difficulty in estimating due to heterogeneity and sorting of students → attend universities that matched ability
: affects choice of university
(possibly look at binary dependent variable)
(i) estimates are biased if the quality effect on earnings is non­linear
(ii) supply constraints at the prestigious universities
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male graduates from russell group (RG) earn 4­12% higher than those from modern universities
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drop females as the analysis was biased by selection into the labour force effects

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(Number of years since graduating and effect on earnings over and above type of university) university type, a­level score achieved, vector of parental characteristics (social class) and type of school attended prior to university financial benefit of attending RG university is neither dependent on previous academic achievement nor parental background → levels the playing field. BUT heterogeneity between prestigious institutions is large (returns varying by up to 10%) high revenue courses? homogenisation of students within institutions ­­ account for 40% of the explained growth in the dispersion of returns to HE

4. College Quality and Future Earnings: Where should you send your child to college http://www.jstor.org/discover/10.2307/1827765?sid=21105862031831&uid=3738032&uid=2&uid=4 ­ analysis applied to only male graduates (different process applied to women ­ need research on this)
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THERE IS A GENDER DIFFERENTIAL IN THE EFFECT ON UNITYPE ON WAGES
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selectivity and private east → positive effect on future earnings
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expenditures per
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