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Human Capital Heterogeneity: University Choice and Wages

Publication Date
  • J31 - Wage Level And Structure
  • Wage Differentials
  • I23 - Higher Education Research Institutions
  • J24 - Human Capital
  • Skills
  • Occupational Choice
  • Labor Productivity
  • Education


This paper analyzes the impact of post-secondary education on wages in Israel. The focus is on the impact of university choice on individual wages controlling for the degree acquired and the area of study. Although the raw data indicate that universities command a different return to education, the paper shows that this is due to the selection of more able individuals to particular universities and not to differences in the quality of education offered. The paper is based on a unique data set linking the 1995 census of population, the universities’ records, and the Manufacturing and Crafts Survey.

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