Abstract
This paper considers the returns to earning a baccalaureate degree from a Historically Black College/University (HBCU) relative to a non-HBCU for black Americans. With data from the National Survey of Black Americans, we use propensity score matching estimators to estimate the treatment effect of graduating from an HBCU on direct labor market outcomes, and on psychological outcomes that indirectly increase wages. We find that the treatment effect of graduating from an HBCU relative to a non-HBCU is positive with respect to labor market and psychological outcomes across three decades. As our direct labor market outcome measure reflects permanent earnings, our results suggest that as HBCUs afford graduates relatively superior long-run returns they continue to have a compelling educational justification, as the labor market outcomes of their graduates are superior to what they would have been had they graduated from a non-HBCU.
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