Catholic schools or school quality? The effects of Catholic schools on labor market outcomes

This paper studies the effects of attending a Catholic high school on students’ labor market outcomes. Using data from the Wisconsin Longitudinal Study, I find that Catholic schooling is significantly associated with higher wages over the careers even after taking into account possible selection into Catholic schools with instruments. Using matched school quality data for public and Catholic schools, I further find that Catholic and public schools are different in various aspects of school quality measures and that these differences explain most of Catholic school effects. Among the school quality variables, teacher quality and the number of math courses taken are estimated to matter the most for students’ later earnings in the long run.

Research highlights▶ Catholic schooling has a permanent and significant impact on wages. ▶ Catholic and public schools are different in various school quality measures. ▶ Teacher quality and curriculum explain most of the Catholic school effects. ▶ Teacher quality is significantly associated with students’ wage outcomes. ▶ Math courses taken in high school are linked to higher wages in the long run.