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Caught in the cycle: economic conditions at enrollment and labor market outcomes of college graduates
Bičáková, Alena ; Cortes, G. M. ; Mazza, J.
We find robust evidence that cohorts of graduates who enter college during worse economic\ntimes earn higher average wages than those who enter during better times. This difference is\nnot explained by differences in economic conditions at the time of college graduation, changes\nin _eld of study composition, or changes in selection into occupations or industries. Cohorts\nwho start college in bad times are not more positively selected based on their high-school\noutcomes, but they graduate with higher college grades, and earn higher wages conditional on\ntheir grades. Our results suggest that these cohorts exert more effort during their studies.

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