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

38 Pages Posted: 31 Aug 2017

See all articles by Russell Weinstein

Russell Weinstein

University of Illinois at Urbana-Champaign - School of Labor & Employment Relations; University of Illinois at Urbana-Champaign - Department of Economics

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

JEL Classification: I23, I26, J31, D83

Suggested Citation

Weinstein, Russell, University Selectivity, Initial Job Quality, and Longer-Run Salary. IZA Discussion Paper No. 10911. Available at SSRN: https://ssrn.com/abstract=3029781

Russell Weinstein (Contact Author)

University of Illinois at Urbana-Champaign - School of Labor & Employment Relations ( email )

504 East Armory Avenue
Champaign, IL 61820-6297
United States

HOME PAGE: http://publish.illinois.edu/RussellWeinstein

University of Illinois at Urbana-Champaign - Department of Economics ( email )

410 David Kinley Hall
1407 W. Gregory
Urbana, IL 61801
United States

HOME PAGE: http://publish.illinois.edu/RussellWeinstein

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