Substitution effects in college admissions

Arbeitspapier

I show how local supply changes create ripple effects in a national educational market. Admitting an applicant to a program will free up a slot to be filled at her next-best alternative. To investigate such substitution effects I re-engineer the centralized admission system of the Danish tertiary education sector and simulate equilibria under counterfactual supply. I estimate potential earnings with a regression discontinuity design and quantify market clearings in terms of earnings. On average, a change of 10 slots leads to 15 applicants moving and substitution effects explain 40 percent of the variation in earnings. Substitution externalities are generally positive but vary in sign and magnitude. I document a trade-off between earnings and inequality.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Memorandum ; No. 03/2021

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Computational Techniques; Simulation Modeling ; Analysis of Education ; Educational Finance; Financial Aid ; Education and Inequality ; Returns to Education ; Human Capital; Skills; Occupational Choice; Labor Productivity ; National Government Expenditures and Education
• Thema: Field of study ; College admission ; Program evaluation ; RDD

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Gandil, Mikkel Høst
• Ereignis: Veröffentlichung
• (wer): University of Oslo, Department of Economics
• (wo): Oslo
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/250305
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ