The returns to individual and college characteristics: Evidence from the National Longitudinal Survey of Youth

There is growing interest in the heterogeneity of earnings among college graduates. This study examines earnings differentials across both individual and institutional characteristics. Using data from the National Longitudinal Survey of Youth, it can be seen that graduates from highly or most selective colleges and universities earn significantly more than graduates from less selective institutions. Additionally, graduates from graduate degree granting and research universities, and private universities earn more than their counterparts from liberal arts colleges and public institutions. There is, however, variation across racial and gender groups in the returns to individual and college characteristics. These findings are important in an educational environment where the (market) value of a liberal arts education is under scrutiny, and where the higher costs of private versus public colleges and universities are being questioned.