Hui, Taylor Shek-wai (2004): The US/Canada Difference in Postsecondary Educational Choice.
Download (384kB) | Preview
This paper attempts to tackle the puzzle of why more Canadians choose community colleges over universities than their American counterparts, when previous research has suggested that the return to community college education is low in Canada. Using data from the Survey of Labour and Income Dynamics for Canada and the National Longitudinal Survey of Youth 79 for the US, I estimate returns to education with a trinomial selection correction using various instruments. I simulate the educational choices of Canadians who face American returns to education, and vice versa. I found that Canadians have a relatively strong incentive to choose community colleges if occupational choices are controlled for. The second finding is that Canadian universities and colleges specialize in different types of human capital. Also, my analysis confirms that the elasticity of educational attainment to tuition and fees is low. Finally, the self-selection processes in the two countries are different. More able Americans have higher educational attainment while more productive Canadians prefer going to universities but not community colleges.
|Item Type:||MPRA Paper|
|Original Title:||The US/Canada Difference in Postsecondary Educational Choice|
|Keywords:||Returns to Education; Educational Choices; Post-secondary Education.|
|Subjects:||A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics > A22 - Undergraduate
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials
I - Health, Education, and Welfare > I2 - Education and Research Institutions > I20 - General
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity
|Depositing User:||Shek-wai Hui|
|Date Deposited:||20. Oct 2009 09:00|
|Last Modified:||20. Feb 2013 18:54|
Barnow, Burt S., Cain, Glen G. and Goldberger, Arthur S. (1980): “Issues in the Analysis of Selectivity Bias,” in Ernst W. Stromsdorfer and George Farkas (eds), Evaluation Studies Review Annual, Volume 5, Beverly Hills, CA.: Sage Publications, 43-59.
Bar-Or, Yuval; Burbidge, John; Magee, Lonnie and A Leslie Robb (1995) “The Wage Premium to a University Education in Canada, 1971-1991” Journal of Labor Economics, 13(4)
Caponi, Vincenzo and Miana Plesca (2000) “The choice for higher education in Canada: a comparison of returns from high school, community college and university.” unpublished manuscript.
Card, David (1999) “The Causal Effect of Education on Earnings” in Orley Ashenfelter and David Card (eds.) Handbook of Labor Economics, Volumn 3a, Elsevier Science B.V., 1802-1860
Ferrer, Ana and W. Craig Riddell (2002) “The Role of Credentials in the Canadian Labour Market,” Canadian Journal of Economics, 35(4), 879-905.
Garen, John (1984) “The returns to schooling: a selectivity bias approach with a continuous choice variable,” Econometrica 52(3), 1199-218
Gill, Andrew M. and Duane E. Leigh (forthcoming) “Do the Labor Market Payoffs to Community Colleges Differ Between Transfer and Terminal Training Programs? ” Journal of Human Resources, forthcoming.
Grubb, W. Norton (1993) “The Varied Economic Returns to Post-secondary Education: New Evidence from the Class of 1972.” Journal of Human Resources, 28(2).
Hearn, James C. and David Longanecker (1985) “Enrolment Effects of Alternative Post-secondary Pricing Policies.” Journal of Higher Education, 56(5), 485-508.
Heckman, James J (1979) “Sample Selection Bias as a Specification Error.” Econometrica, 47(1). 153-161.
Heckman, James J, Lalonde, Robert and Smith, Jeffrey A (1999): “The Economics and Econometrics of Active Labor Market Programs,” in Orley Ashenfelter and David Card (eds.) Handbook of Labor Economics, Volumn 3a, Elsevier Science B.V., 1866-2097.
Heckman, James J., Lochner, Lance and Christopher Taber (1988) “General Equilibrium Treatment Effects: A Study of Tuition Policy.” American Economic Review, 88(2).
Kane, Thomas J (2000) “Rising Public College Tuition and College Entry: How Well Do Public Subsidies Promote Access to College.” National Bureau of Economic Research, Working Paper 5164, Cambridge, Massachusetts.
Kane, Thomas J. and Cecilia E. Rouse (1993) “Labor Market Returns to Two- and Four-Year Colleges: Is a Credit a Credit and Do Degrees Matter? ” National Bureau of Economic Research, Working Paper No. 4268, Cambridge, Massachusetts.
Kane, Thomas J. and Cecilia E. Rouse (1995) “Labor Market Returns to Two- and Four-Year College.” American Economic Review, 85(3), 600-14. 23
Kane, Thomas J. and Cecilia E. Rouse (1999) “The Community College: Educating Students at the Margin Between College and Work.” Journal of Economic Perspectives, 13(1), 63-84.
Lee, Lung-Fei (1983) “Generalized Econometric Models with Selectivity,” Econometrica, 51(2), 507-512.
Leigh, Duane E. and Andrew M. Gill (1997) “Labor Market Returns to Community Colleges: Evidence for Returning Adults” Journal of Human Resources, 32(2), 334-53
Leslie, Larry L. and Paul T. Brinkman (1987) “Student Price Response in Higher Education: The Student Demand Studies,” Journal of Higher Education, 58(2), 181-204.
Levin, B (1990) “Tuition Fees and University Accessibility.” Canadian Public Policy, 16(1).
Pearman, Noel (2001) “Why University? Examining the Determinants of the Choice For Higher Education: Canada and the United States,” unpublished manuscript.
Rouse, Ceilia E (1995) “Democratization or Diversion: The Effect of Community Colleges on Educational Attainment.” Journal of Business and Economic Statistics, 13(2): 217-24.
Trost, Robert P., and Lung-Fei Lee (1984) “Technical Training and Earnings: A Polychotomous Choice Model with Selectivity.” Review of Economics and Statistics, 66(1): 151-56.
National Center for Education Statistics (1989 - 1996): Digest of Education Statistics, 1989 - 1996. Washington, D.C. US. Department of Education.
Willis, Robert and Sherwin Rosen (1979) “Education and Self-Selection.” Journal of Political Economy, 87(5).