Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
Do university enrollment constraints affect education and earnings?
Abstract: In most countries the number of places at the universities
is restricted. This paper estimates the effect of university enrollment
constraints in 1982 on years of education and earnings in Sweden 1981-96.
The effect on educational attainment is related to labor market
performance, to estimate the effect of education on earnings. The variation
used is driven by discrete jumps in the admission selection to university.
The results show that university enrollment constraints affect educational
attainment over the entire period studied. In 1996, admitted applicants in
1982 have about one quarter of a year longer education than screened out
applicants. The effect of enrollment constraints changes with time. In the
end of the panel, admitted applicants in 1982 are no better off than
screened out applicants. The estimated return to education in Sweden is
very low, both with least square and instrumental variable techniques.
Keywords: Education and earnings; admission selection; regression-discontinuity design; long panel; (follow links to similar papers)
JEL-Codes: I21; J31; (follow links to similar papers)
46 pages, October 7, 2002
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