Umeå Economic Studies,
Umeå University, Department of Economics

Abstract: This paper examines the effect of college quality on earnings using administrative data on Swedish college students. To consider possible heterogeneity, the effects for men and women are estimated separately and quantile regression is used to determine whether the effect of college quality differs over the income distribution. The overall results suggest that the link between college quality and earnings is weak in Sweden. A small positive effect is found for individuals that are likely to work full time as well as for individuals in the upper part of the income distribution, while negative effects are found for individuals located in the middle and lower parts of the income distribution. Furthermore, controlling for region of work affects the estimated effects, indicating a correlation between choice of college quality and choice of labor market region.

Keywords: College quality; Earnings; Selection on observables

JEL-codes: I21; J31

44 pages, October 2, 2009

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