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 di erences 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 bene ts, 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

Kim, Taehoon, Estimating Pecuniary and Non-Pecuniary Returns to College Education for Academically Marginal Students: Evidence from the College Enrollment Quota Policy in South Korea (April 20, 2020). Available at SSRN: https://ssrn.com/abstract=3041778 or http://dx.doi.org/10.2139/ssrn.3041778

Taehoon Kim (Contact Author)

Kyung Hee University ( email )

Seoul
Korea, Republic of (South Korea)

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