Estimating Pecuniary and Non-Pecuniary Returns to College Education for Academically Marginal Students: Evidence from the College Enrollment Quota Policy in South Korea
Posted: 26 Sep 2017 Last revised: 4 Jun 2021
Date Written: April 20, 2020
Abstract
This study attempts to estimate pecuniary and non-pecuniary returns to college education for academically marginal students in Korea. The Korean government limits the number of admission slots at each college by assigning a binding quota for each year. An increase in the quota admits more academically marginal students to college. The Instrumental Variables (IV) estimation, using dierences in the ratio of four-year college quota to cohort size across regions and cohorts, shows that four-year college attendance of marginal students increases their hourly wage by 68.5%. College education also increases fringe benets, as well as life and job satisfaction.
Keywords: Returns to education; college enrollment quota; academically marginal student; non-pecuniary returns
JEL Classification: H75, I20, I23, I26, I28
Suggested Citation: Suggested Citation