The Value of College

This article investigates the decision of high school athletes to pursue college educations or play professional sports immediately after high school. Using salary, draft, and playing data for Major League Baseball, along with minor league playing data, the authors estimate the lifetime earnings of drafted high school baseball players. The results show that players drafted in higher rounds with more ability should enter professional baseball, but players drafted in lower rounds have higher expected earnings if they attend college. The authors also find that in 2003, players' decisions were highly correlated with the difference in expected lifetime earnings.