Wages and Higher Education Participation
MPRA (Munich Personal RePEc Archive) Working Paper No.19615
18 Pages Posted: 27 Oct 2009 Last revised: 31 Dec 2009
Date Written: September 13, 2009
The paper develops a model for the screening mechanism for higher education, within an adverse selection framework. Specifically it examines the effect of wage earned by high school graduates on higher education participation. The model pinpoints a positive relation between the “high school” wage and the number of candidates entered in higher education with positive influences on the quality of selection mechanism. An empirical examination is conducted, using U.S. data, in order to investigate the validity of our analytical results.
Keywords: Admissions, High school wage, Higher education, Quality
JEL Classification: I28, J24, J39
Suggested Citation: Suggested Citation