Equilibrium tuition, applications, admissions, and enrollment in the college market

• Autores: Chao Fu
• Localización: Journal of Political Economy, ISSN-e 1537-534X, Vol. 122, Nº. 2, 2014, págs. 225-281
• Idioma: inglés
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• Resumen

  • This paper distinguishes between the human capital and signaling theories by estimating the earnings return to a high school diploma. Unlike most indicators of education (e.g., a year of school), a diploma is essentially a piece of paper and, hence, by itself cannot affect productivity. Any earnings return to holding a diploma must therefore reflect the diploma�s signaling value. Using regression discontinuity methods to compare the earnings of workers who barely passed and barely failed high school exit exams�standardized tests that students must pass to earn a high school diploma�we find little evidence of diploma signaling effects.