Estimating the Returns to College Quality with Multiple Proxies for Quality

A-Tier
Journal: Journal of Labor Economics
Year: 2006
Volume: 24
Issue: 3
Pages: 701-728

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Existing studies of the effects of college quality on wages typically rely on a single proxy variable for college quality. This study questions the wisdom of using a single proxy given that it likely contains substantial measurement error. We consider four econometric approaches to the problem that involve the use of multiple proxies for college quality: factor analysis, instruments variables, a method recently proposed by Lubotsky and Wittenberg, and a GMM estimator. Our estimates suggest that the existing literature understates the wage effects of college quality and illustrate the value of using multiple proxies in this and other similar contexts.

Technical Details

RePEc Handle
repec:ucp:jlabec:v:24:y:2006:i:3:p:701-728
Journal Field
Labor
Author Count
2
Added to Database
2026-01-24