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Hershbein, Brad J. – W. E. Upjohn Institute for Employment Research, 2013
Recent studies have found a large earnings premium to attending a more selective college, but the mechanisms underlying this premium have received little attention and remain unclear. In order to shed light on this question, I develop a multidimensional signaling model relying on college grades and selectivity that rationalizes students' choices…
Descriptors: Grade Point Average, Salaries, Selective Admission, Colleges