University selectivity and earnings: Evidence from UK data on applications and admissions to university

This paper estimates the returns to university selectivity in the UK using administrative data on applications and admissions to university, linked to a survey of graduates three and a half years after graduation. It compares students who indicated preferences for, and were conditionally accepted to, the same universities – but who attended different ones because some failed to meet the conditions of their preferred offer. The results suggest that one standard deviation in selectivity leads to a 7% increase in earnings.