Prestige Matters: Wage Premium and Value Addition in Elite Colleges
- American Economic Journal: Applied Economics (Forthcoming)
This paper provides evidence that graduates of elite public institutions
in India have an earnings advantage in the labor-market even though attending
these colleges has no discernible effect on academic outcomes.
Admission to the elite public colleges is based on the scores obtained in
the Senior Secondary School Examinations. I exploit this feature in a regression
discontinuity design. Using administrative data on admission
and college test scores and an in-depth survey, I find that the salaries
of elite public college graduates are higher at the admission cutoff although
the exit test scores are no different.
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