graduation earnings, as well as pre-college academic preparation and contextual factors, both of which are known to influence earnings. However, we demonstrate that differences in earnings between Hispanic students who graduate from HSIs and those from non-HSIs are driven by selectivity rather than HSI designation. We found no difference in wages when comparing graduates of HSIs and non-HSIs that are similarly selective, after controlling for our measures of human and social capital and the region of Texas where the graduates were employed ten years after finishing high school. This finding is important, as HSIs are often criticized for having lower rates and, by extension, lower returns on investment for those attending these institutions. Previous research has provided evidence that, after controlling for student and institutional characteristics, Hispanic students graduate from HSIs at equal rates as from non-HSIs (Authors, 2015). This analysis suggests similar outcomes in regard to labor market outcomes: Hispanic students graduating from HSIs have comparable earnings to those who graduate from non-HSIs, after accounting for selectivity. More selective institutions, by definition, have more restricted admissions policies and enroll a more academically prepared body of students. Analyses that compare HSIs to non-HSIs without accounting for the enormous role selectivity plays should at least acknowledge the important role of selection bias in interpreting such results. Proper comparison groups, when available, are the most accurate way to present research. If such data are not available, which is a common limitation in many analyses, we recommend acknowledging this limitation and the associated implications of policy recommendations based on the limited data. Our analysis does not suggest that Hispanic students should not attend selective institutions. They instead illuminate the need to account for key elements in to reduce
earnings, as well as pre-college academic preparation and contextual factors, both of which are known to influence earnings. However, we demonstrate that differences in earnings between Hispanic students who graduate from HSIs and those from non-HSIs are driven by selectivity rather than HSI designation. We found no difference in wages when comparing graduates of HSIs and non-HSIs that are similarly selective, after controlling for our measures of human and social capital and the region of Texas where the graduates were employed ten years after finishing high school. This finding is important, as HSIs are often criticized for having lower graduation rates and, by extension, lower returns on investment for those attending these institutions. Previous research has provided evidence that, after controlling for student and institutional characteristics, Hispanic students graduate from HSIs at equal rates as from non-HSIs (Authors, 2015). This analysis suggests similar outcomes in regard to labor market outcomes: Hispanic students graduating from HSIs have comparable earnings to those who graduate from non-HSIs, after accounting for selectivity. More selective institutions, by definition, have more restricted admissions policies and enroll a more academically prepared body of students. Analyses that compare HSIs to non-HSIs without accounting for the enormous role selectivity plays should at least acknowledge the important role of selection bias in interpreting such results. Proper comparison groups, when available, are the most accurate way to present research. If such data are not available, which is a common limitation in many analyses, we recommend acknowledging this limitation and the associated implications of policy recommendations based on the limited data. Our analysis does not suggest that Hispanic students should not attend selective institutions. They instead illuminate the need to account for key elements in to reduce