ERIC Number: ED333820
Record Type: RIE
Publication Date: 1990-Feb
Reference Count: N/A
Accounting for Uncertain Educational Outcomes in Estimating the Return to Education. Technical Paper No. 15.
Altonji, Joseph G.
A prototype model was developed to estimate the effect of various variables on the internal rate of return to starting college. The model arose out of observations that there is a nonlinear relationship between education and earnings, that many students who begin college never finish, that there are large differences across fields of specialization in the earnings differential between college and high school graduates, and that many high school and family background characteristics appear to affect earnings. The model was then applied to data from the National Longitudinal Survey of the High School Class of 1972. Results found that black males have a lower rate of return on one year of college than white males (5.4 percent versus 5.9 percent) which appears, however, to be due not to race but to other characteristics. Females also had a lower rate of return than men. It was noted that none of these differences are explained by differences in the observed characteristics of males and females. Other research using this model has shown a higher return on college attendance for women over men. It is suggested that further research and refinement of the model is necessary before strong conclusions can be developed. The study includes one table displaying results and nine references. (JB)
Descriptors: Blacks, College Outcomes Assessment, College Role, Educational Economics, Family Characteristics, High School Graduates, High Schools, Higher Education, Income, Models, Racial Factors, Salaries, Sex Differences, Socioeconomic Status, Wages
National Center on Education and Employment, Box 174, Teachers College, Columbia University, New York, NY 10027.
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Spencer Foundation, Chicago, IL.; Northwestern Univ., Evanston, IL. Center for Urban Affairs.; Office of Educational Research and Improvement (ED), Washington, DC.
Authoring Institution: National Center on Education and Employment, New York, NY.; Rand Corp., Santa Monica, CA.
Identifiers: National Longitudinal Study High School Class 1972