College Choice and Subsequent Earnings: Results Using Swedish Sibling Data

21 Pages Posted: 29 Dec 2005

See all articles by Lena Lindahl

Lena Lindahl

Stockholm University - Faculty of Social Sciences

Hakan Regner

Swedish Confederation of Professional Associations (SACO)

Abstract

Using data on 19,000 whole siblings, it is shown that earnings vary significantly among students who have graduated from different colleges. The cross-section estimates are up to twice the within-family estimates, indicating that a regression estimator of college effects that does not adjust properly for family characteristics will overestimate the earnings premium of college. This study also shows that the effects of college choice vary between sisters and brothers and that there is a relationship between teacher quality and the college effects. These findings suggest that there is no straightforward interpretation of college in individual earnings equations.

Keywords: Education, college types, earnings equations, siblings

JEL Classification: A23, I21, J31, J44

Suggested Citation

Lindahl, Lena and Regner, Hakan, College Choice and Subsequent Earnings: Results Using Swedish Sibling Data. Scandinavian Journal of Economics, Vol. 107, No. 3, pp. 437-457, September 2005. Available at SSRN: https://ssrn.com/abstract=857806 or http://dx.doi.org/10.1111/j.1467-9442.2005.00417.x

Lena Lindahl (Contact Author)

Stockholm University - Faculty of Social Sciences ( email )

SE-106 91 Stockholm
Sweden

Hakan Regner

Swedish Confederation of Professional Associations (SACO) ( email )

Stockholm
Sweden

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