Title

The Economic Return to School Quality: A Partial Survey

Author(s)

David Card David Card (Princeton University)

Alan B. Krueger Alan Krueger (U.S. Department of Labor and Princeton University)

Abstract

We present a survey of the literature on the economic returns to school quality. A dozen studies conducted over the past 20 years show remarkably consistent estimates of the effect of school quality on students' subsequent earnings. A 10 percent increase in school spending is associated with 1 to 2 percent higher annual earnings for students later in life. We argue that the similarity of the findings across data sources and research methods suggests that school quality has a true causal effect on student earnings. Increases in school resources are also associated with significantly higher educational attainment, although the range of estimates of the effect is relatively wide.

Creation Date

1994-10

Section URL ID

IRS

Paper Number

334

URL

https://dataspace.princeton.edu/bitstream/88435/dsp01r781wg02t/1/334.pdf

File Function

Jel

A30

Keyword(s)

school quality, student achievement, earnings

Suppress

false

Series

1