The Effects of College Intergenerational mobility Schooling and Wages/occupation Selective colleges.

The Effects of The Effects of CollegeCollege

Intergenerational mobilityIntergenerational mobility

Schooling and Schooling and Wages/occupationWages/occupation

Selective collegesSelective colleges

Social MobilitySocial Mobility Degree to which our position in society changesDegree to which our position in society changes Intra-generationalIntra-generational

Changes within our lifespanChanges within our lifespan Inter-generationalInter-generational

Changes between generationsChanges between generations

The Structure of The Structure of StratificationStratification

Can begin to learn something about Can begin to learn something about the structure of stratification by the structure of stratification by looking at looking at patterns of patterns of intergenerationalintergenerational mobility mobility

How much of one’s position is How much of one’s position is passed on to one’s children?passed on to one’s children?

Types of Types of intergenerational intergenerational

mobilitymobility InheritanceInheritance – generates class-based – generates class-based

groupsgroups StructuralStructural – driven by changes in – driven by changes in

economic structureeconomic structure ExchangeExchange – mobility based on – mobility based on

individual achievementindividual achievement

“Of course, it helped that my father was also a king.”

Structure of Pure Structure of Pure InheritanceInheritance

parents children

Social Standing

Structure of Structural Structure of Structural MobilityMobility

MoreMore jobs in jobs in some some sectorssectors

FewerFewer jobs in jobs in other other sectorssectors

parents children

Structure of Exchange Mobility

parents children

What drives mobility in the What drives mobility in the US?US?

A mixture of structural and exchange A mixture of structural and exchange mobilitymobility

Family background (inheritance) Family background (inheritance) operates through its influence on operates through its influence on educational attainmenteducational attainment

These patterns are clearly revealed in These patterns are clearly revealed in the association between school the association between school attainment and wages (income)attainment and wages (income)

Earnings of Adults with varying levels of education

Historical Earnings Comparison by level of schooling

Expected Earnings by level of schooling and sex

So, college ‘pays off.’So, college ‘pays off.’

But is it “worth it” to attend a highly But is it “worth it” to attend a highly selective college (e.g., Ivy League, selective college (e.g., Ivy League, Stanford, Williams)?Stanford, Williams)?

0

5,000

10,000

15,000

20,000

25,000

30,000

Stanford UW

Applicants

Admitted

Enrolled

10%

68%

What does it mean to be What does it mean to be selective?selective?

Price of AdmissionPrice of Admission

Cost of attending Harvard 2007-2008Cost of attending Harvard 2007-2008Billed costs = $45,000Billed costs = $45,000

Total costs approximately $ 48-50,000Total costs approximately $ 48-50,000

Cost of UW 2007-2008Cost of UW 2007-2008Billed costs = $18,000Billed costs = $18,000total costs approximately $ 22,000total costs approximately $ 22,000

Well-known FactWell-known Fact

Students who graduate from Students who graduate from selective colleges earn moreselective colleges earn more

each 100 point increase in each 100 point increase in average SAT of a school results in 3-average SAT of a school results in 3-7% higher earnings later in life7% higher earnings later in life

Why?Why?

Dale and Krueger 2002Dale and Krueger 2002 Careful study of the income ‘returns’ to Careful study of the income ‘returns’ to

selective collegesselective colleges ““Natural Experiment”: Natural Experiment”:

compared students who were admitted to selective compared students who were admitted to selective schools, but chose to go elsewhere with earnings of schools, but chose to go elsewhere with earnings of students who enrolled in selective schoolsstudents who enrolled in selective schools

FindingsFindings1.1. Students who attend selective colleges earn moreStudents who attend selective colleges earn more2.2. But, among students who were admitted to But, among students who were admitted to

selective colleges and chose to go elsewhere, no selective colleges and chose to go elsewhere, no difference in wagesdifference in wages

3.3. Except for students from disadvantaged Except for students from disadvantaged backgrounds, who earned more when they went backgrounds, who earned more when they went to selective schools.to selective schools.

For Wednesday:For Wednesday:

Read the Andrew Abbott piece on Read the Andrew Abbott piece on The Aims of EducationThe Aims of Education What is his argumentWhat is his argument What do you think?What do you think?