University Selectivity, Initial Job Quality, and Longer-Run Salary

Russell Weinstein

No 10911, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using Baccalaureate and Beyond data, I study whether university quality, both absolute and relative to other universities in the region, affects earnings one and ten years after graduation, controlling for the individual's SAT score. One year after graduation, high SAT score students earn 12% less if their university's regional rank is worse by 35 places, conditional on absolute university quality. This effect disappears ten years after graduation. The results suggest initial job quality does not have long-run career effects. The results also confirm the initial importance of a university's regional rank, an often overlooked dimension of university quality.

Keywords: labor market return to higher education; employer learning; statistical discrimination (search for similar items in EconPapers)
JEL-codes: D83 I23 I26 J31 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2017-07
New Economics Papers: this item is included in nep-edu and nep-lma
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