Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103458
Authors: 
Hendricks, Lutz
Leukhina, Oksana
Year of Publication: 
2014
Series/Report no.: 
CFS Working Paper Series 487
Abstract: 
This paper studies the effect of graduating from college on lifetime earnings. We develop a quantitative model of college choice with uncertain graduation. Departing from much of the literature, we model in detail how students progress through college. This allows us to parameterize the model using transcript data. College transcripts reveal substantial and persistent heterogeneity in students' credit accumulation rates that are strongly related to graduation outcomes. From this data, the model infers a large ability gap between college graduates and high school graduates that accounts for 54% of the college lifetime earnings premium.
Subjects: 
Education
College premium
College dropout risk
JEL: 
E24
J24
I21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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