Elchanan Cohn

Institutions of Higher Education as Multi-product Firms: Economies of Scale and Scope

A multiple-output cost function is estimated for institutions of higher education in the United States, employing data for 1981-82. The authors flexible fixed cost quadratic function includes three outputs--undergraduate teaching, graduate teaching, and research grants--and one input price--average faculty salaries. Results indicate the existence of scope economies (at least up to a point) for both public and private institutions of higher education. Ray economies of scale are more pronounced in the private sector and product-specific economies of scale are observed only in the public sector for research and graduate teaching. Copyright 1989 by MIT Press.

The wage effects of overschooling revisited

Abstract This study replicates models developed by Verdugo and Verdugo (1989) and Sicherman (1991) to study the wage effects of overschooling. Using the 1985 wave of the Panel Study of Income Dynamics, our results confirm earlier work showing that the rate of return to required schooling exceeds the rate of return to overschooling, and that the rate of return to underschooling is negative. At the same time, our results also confirm that, on the average, persons whose schooling exceeds (is less than) the required schooling for their occupation or job, respectively, receive lower (higher) wages than workers with similar levels of schooling in occupations or jobs having the required schooling. These results remain robust for alternative definitions of required, over- and underschooling, as well as for alternative specifications of the wage equations.

The Economic Returns to Lifelong Learning in OECD Countries

Recent literature on the returns to schooling and vocational and occupational training in OECD countries is examined, with somewhat greater emphasis being accorded the US and UK experience. We provide estimates of short-cut, Mincer-type and internal rates of return to schooling, as well as alternative estimates of the returns to formal and informal post-school training investments.

Class Attendance and Performance in Principles of Economics

Abstract A sample of 347 students, enrolled in principles of economics classes during the period 1997–2001, is used to examine the relation between class attendance and student performance on examinations. Among the questions examined are: Is attendance related to performance, with and without controls for other factors? Do only substantial levels of absence matter? Do low test scores cause more frequent subsequent absences? Do the results change when individual heterogeneity (in addition to controls for differences in SAT and GPA) is considered in the context of random‐effects and fixed‐effects models, using panel data? Can overall attendance be proxied by attendance at six meetings at the end of the semester, and does such a proxy yield the same relation to performance as overall attendance? We also study the factors that appear to contribute to improved classroom attendance.

Estimation of a frontier production function for the South Carolina educational process

Abstract Using data from 541 classes in South Carolina, OLS and frontier production functions are estimated. Results indicate that classes taught by teachers who received merit awards show greater mathematics and reading achievement gain scores, as are classes in which there are fewer students who receive free or reduced-fee lunch. Results for teacher sex and race are ambiguous, as are results for teacher education. We also found a positive relation between achievement and class size, contrary to popular perceptions. Finally, the results from the frontier production function strongly suggest that at least some degree of inefficiency is present in the South Carolina education system. Some suggestions for school improvement are offered.

Economies of Scale and Scope in Japanese Private Universities

A flexible fixed-cost quadratic function is employed to estimate multiple-output cost functions for 94 private universities in Japan for the year 1991. The three outputs employed are undergraduate teaching, graduate teaching and research. Our results provide evidence of ray economics of scale and both global and product-specific economies of scope. Product-specific economics of scale are shown for undergraduate and graduate teaching in relatively small universities and for research in relatively large universities. Implications of the findings are discussed.

Incidence and wage effects of overschooling and underschooling in Hong Kong

Abstract Data from the 1986 Hong Kong By-census and the 1991 Hong Kong Census were used to study the following issues: (1) What is the incidence of adequate schooling, overschooling and underschooling in Hong Kong, and has it changed between 1986 and 1991? (2) What are the wage consequences of adequate schooling, overschooling and underschooling, and have they changed over time? Also, are the results influenced by potential labor-market experience? The empirical results are discussed in the context of recent changes in the structure of the Hong Kong economy and the labor market. [ JEL I21, J31]

Notetaking, Working Memory, and Learning in Principles of Economics

The importance of notetaking techniques and working memory are explored in the learning of economics in a college principles course at the University of South Carolina. Instructor-supplied notes are found to be a good substitute for a classroom lecture.

A benefit-cost analysis of investment in college education in the United States: 1969-1985

Abstract This study reports internal rates of return (IRORs) to college education for the years 1969, 1974, 1978, 1982 and 1985, based on the Panel Study of Income Dynamics. Results indicate that the IROR declined from 1969 to 1974, as claimed by Richard Freeman, but that by 1978 the IROR was nearly equal to what it was in 1969. From 1978 to 1982 the IROR increased, according to one estimation method, and slightly decreased, according to another. From 1982 to 1985 the IROR remained essentially unchanged, according to one method, and increased drastically, according to an alternative method. Results also indicate that the IROR may be sensitive to econometric techniques employed to estimate earnings functions, as well as to other assumptions invoked to derive age-earnings profiles.

Further evidence on the screening hypothesis

Abstract In two recent studies that have appeared in this journal, Katz and Ziderman (1980) and Psacharopoulos (1979) investigate the screening hypothesis using different methodologies and data sources (nation-wide household surveys for Israel and the United Kingdom, respectively). For this paper, we employ data for the United States and extend their analysis. Our general conclusion is that, regardless of the techniques used to test for its existence, the screening hypothesis draws no empirical support from United States data.