Earnings Differences Between Transfer and Non-transfer Students

Abstract

Using data on three cohorts of Swedish university entrants, this study examines whether earnings vary between students who change universities and students who do not change. The results show that earnings, during the first years after leaving the university, are significantly lower for students who change universities compared to students who do not change. Earnings differences decrease significantly over time and over the earnings distribution. The pattern in the estimates seems consistent with non-transfer students, who have higher earnings because of their relatively earlier labor market entry, and transfer students catching up because of their additional human-capital investments.College education; University choice; Earnings distribution