Suppose a selective state flagship university employs a cutoff in test scores, which is not known at the point of application, to determine admission. How might this administrative rule, combined with the observation of earnings a decade later, be used to estimate the return to attending the state flagship university? Why would the publication of the admissions cutoff to students and families before application likely invalidate this estimation approach?
Suppose a selective state flagship university employs a cutoff in test scores, which is not known at the point of application, to determine admission. How might this administrative rule, combined with the observation of earnings a decade later, be used to estimate the return to attending the state flagship university? Why would the publication of the admissions cutoff to students and families before application likely invalidate this estimation approach?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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3. Suppose a selective state flagship university employs a cutoff in test scores, which is not known at the point of application, to determine admission. How might this administrative rule, combined with the observation of earnings a decade later, be used to estimate the return to attending the state flagship university? Why would the publication of the admissions cutoff to students and families before application likely invalidate this estimation approach?
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