The returns to flexible postsecondary education: The effect of delaying school

Abstract

We compare the returns to education between graduates of post secondary institutions who delayed their tertiary education for some time and those that proceeded with no delays. Using a unique survey that collects information on a representative cohort of graduates, we are able to estimate the effects of delaying school among successful graduates abstracting from specific macroeconomic conditions at the time of graduation. Our results show that graduates that delayed their education enjoy a premium relative to graduates that did not, even after considering other factors such as experience or labor market connections. These estimates are robust to the possibility of selection in the decision to delay school.