Returns to University Quality in Australia: A Two-Stage Analysis

28 Pages Posted: 4 Oct 2014

See all articles by David Carroll

David Carroll

University of New South Wales (UNSW)

Chris Heaton

Macquarie University, Macquarie Business School

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy; IZA Institute of Labor Economics

Abstract

This study investigates the relationship between university quality and graduate starting salaries using pooled Australian data from the Graduate Destination survey and a two-stage estimation methodology. The results suggest that average starting salaries for young undergraduates differ significantly across universities after controlling for relevant confounding factors, though the range of university effects is fairly small in relation to other salary determinants, particularly course area. The results are robust to alternative specifications and suggest that employers generally do not place salary premia on attending a high-quality or prestigious university, at least upon workforce entry.

Keywords: human capital, returns to education, university choice

JEL Classification: A22, I23, J24

Suggested Citation

Carroll, David and Heaton, Chris and Tani, Massimiliano, Returns to University Quality in Australia: A Two-Stage Analysis. IZA Discussion Paper No. 8473, Available at SSRN: https://ssrn.com/abstract=2505335

David Carroll (Contact Author)

University of New South Wales (UNSW) ( email )

Kensington
High St
Sydney, NSW 2052
Australia

Chris Heaton

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy ( email )

Sydney, NSW 2052
Australia
+612 6268 8512 (Phone)
+612 6248 8450 (Fax)

HOME PAGE: http://www.unsw.adfa.edu.au/sbus/staff_cvs/about_max_t.html

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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