July 1, 2011, 12:13 PM ET
Christopher Shea | WSJ
Estimating the Return to College Selectivity over the Career Using Administrative Earnings Data (pdf file)
Stacy Dale, Alan B. Krueger
NBER Working Paper No. 17159
Issued in June 2011
from the abstract:
We find that the return to college selectivity is sizeable for both cohorts in regression models that control for variables commonly observed by researchers, such as student high school GPA and SAT scores. However, when we adjust for unobserved student ability by controlling for the average SAT score of the colleges that students applied to, our estimates of the return to college selectivity fall substantially and are generally indistinguishable from zero.Not having read the paper, I don't understand how controlling for average SAT score of the colleges students applied to, as opposed to simply controlling for SAT scores of the students, makes a difference.
I'm going to download and take a look.