E. Keller
The Slowdown in American Educational Attainment
Keller, E.
Authors
Abstract
Relative to those for high school graduates, lifetime earnings for college graduates are higher for more recent cohorts. At the same time, across successive cohorts born after 1950, there is a stagnation in the fraction of high school graduates that go on to complete a college degree. What explains this phenomenon? I formulate a life-cycle model of human capital accumulation in college and on the job, where successive cohorts decide whether or not to acquire a college degree as well as the quality of their college education. Cohorts differ by the sequence of rental price per unit of human capital they face and by the distribution of initial human capital across individuals. My model reproduces the observed pattern in college attainment for the 1920–1970 birth cohorts. The stagnation in college attainment is due to the decrease in the growth rate of the rental price per unit of human capital commencing in the 1970s. My model also generates about 80% of the increase in lifetime earnings for college graduates relative to those for high school graduates observed across cohorts.
Citation
Keller, E. (2014). The Slowdown in American Educational Attainment. Journal of Economic Dynamics and Control, 46, 252-270. https://doi.org/10.1016/j.jedc.2014.07.007
Journal Article Type | Article |
---|---|
Publication Date | Sep 1, 2014 |
Deposit Date | Dec 6, 2014 |
Publicly Available Date | Dec 8, 2014 |
Journal | Journal of Economic Dynamics and Control |
Print ISSN | 0165-1889 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 46 |
Pages | 252-270 |
DOI | https://doi.org/10.1016/j.jedc.2014.07.007 |
Keywords | Education, College attainment, Human capital, Earnings growth. |
Public URL | https://durham-repository.worktribe.com/output/1440718 |
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Copyright Statement
NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Economic Dynamics and Control. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Economic Dynamics and Control, 46, September 2014, 10.1016/j.jedc.2014.07.007.
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