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Earnings of students who change universities

Using data on Swedish university entrants, this study finds that earnings are significantly lower for students who change universities compared to students who do not change. Earnings differences decrease over time and over the earnings distribution. The pattern in the estimates seems consistent with non-transfer students having higher earnings because of their earlier labor market entry and transfer students catching up because of their additional human-capital investments. But by changing universities, individuals signal that they are more likely to jump between jobs, and some employers account for these factors when screening job applicants.