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College Choice and Wages: Estimates Using Data on Female Twins

Jere R. Behrman, Mark R. Rosenzweig and Paul Taubman
The Review of Economics and Statistics
Vol. 78, No. 4 (Nov., 1996), pp. 672-685
Published by: The MIT Press
DOI: 10.2307/2109954
Stable URL: http://www.jstor.org/stable/2109954
Page Count: 14
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College Choice and Wages: Estimates Using Data on Female Twins
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Abstract

We assess the impact of college quality on women's earnings and the influence of family and individual endowments on college choice using new data from a survey of identical and non-identical twins born in Minnesota. The estimates reject models that ignore school choice. The statistically-preferred estimates suggest that Ph.D.-granting, private universities with well-paid senior faculty and smaller enrollments produce students who have significantly higher earnings later in life. Both the quantity of schooling and the quality of schooling resources are allocated to higher-endowed individuals, which exacerbates pre-existing inequality in human capital and biases conventional estimates of school quality effects.

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