The Effect of Institutional Expenditures on Employment Outcomes and Earnings
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Griffith, Amanda L.; Rask, Kevin N.
In recent decades public attention on colleges has risen in response to rising college expenditures and costs. This study uses the Education Longitudinal Study of 2002 to investigate how spending impacts salaries and employment outcomes, controlling for selection and the endogeneity of graduation. Our findings indicate that spending on instruction increases salaries, the probability of full-time employment and job match for graduates, particularly for more disadvantaged students, while there are smaller benefits of spending on student services for less disadvantaged students. Non-graduates experience high returns to instructional spending, particularly those with less-educated or low-income parents.
higher education; employment; outcomes; earnings; college expenditures
Required Publisher Statement: Published by the Cornell Higher Education Research Institute, ILR School, Cornell University.