Working Paper: NBER ID: w2602
Authors: Ronald G. Ehrenberg
Abstract: This study utilizes data from a number of sources to estimate how lawyers' starting salaries relate to their ability, the quality of law school they attended, and whether the law school was a private institution. Based upon this analysis, a benefit-cost analysis is conducted of the value of attending a high-quality private institution. Analyses are also done of how the financial attractiveness of law vis-a- vis other careers has changed in recent years and a conceptual framework discussed for law schools to use in allocating their financial aid resources.
Keywords: law school; tuition; financial aid; starting salaries; law graduates
JEL Codes: A22; I22; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Higher LSAT scores (K49) | Higher starting salaries (J31) |
| Higher-ranked law schools (K29) | Higher starting salaries (J31) |
| Private law schools (K29) | Higher starting salaries (J31) |
| Increasing tuition (I23) | Deter applicants (J63) |
| Increasing tuition (I23) | Declining quality of applicants (I21) |
| Declining quality of applicants (I21) | Decreasing real earnings in legal profession (J39) |
| Rising tuition costs relative to starting salaries (J39) | Financial attractiveness of law school attendance (K29) |