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Catching up Is Hard to Do: Undergraduate Prestige, Elite Graduate Programs, and the Earnings Premium

Author

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  • Hersch, Joni

    (Vanderbilt University)

Abstract
A commonly held perception is that an elite graduate degree can "scrub" a less prestigious but less costly undergraduate degree. Using data from the National Survey of College Graduates from 2003 through 2017, this paper examines the relationship between the status of undergraduate degrees and earnings among those with elite post-baccalaureate degrees. Few graduates of nonselective institutions earn post-baccalaureate degrees from elite institutions, and even when they do, undergraduate institutional prestige continues to be positively related to earnings overall as well as among those with specific post-baccalaureate degrees including business, law, medicine, and doctoral. Among those who earn a graduate degree from an elite institution, the present value of the earnings advantage to having both an undergraduate and a graduate degree from an elite institution generally greatly exceeds any likely cost advantage from attending a less prestigious undergraduate institution.

Suggested Citation

  • Hersch, Joni, 2019. "Catching up Is Hard to Do: Undergraduate Prestige, Elite Graduate Programs, and the Earnings Premium," IZA Discussion Papers 12608, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12608
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    Cited by:

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    2. Joni Hersch, 2023. "Gender, race, and job satisfaction of law graduates: Intersectional evidence from the National Survey of College Graduates," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 20(2), pages 339-376, June.
    3. Namingit, Sheryll & Blankenau, William & Schwab, Benjamin, 2021. "Sick and tell: A field experiment analyzing the effects of an illness-related employment gap on the callback rate," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 865-882.
    4. Deborah M. Weiss & Matthew L. Spitzer & Colton Cronin & Neil Chin, 2024. "Why college majors and selectivity matter: Major groupings, occupation specificity, and job skills," Contemporary Economic Policy, Western Economic Association International, vol. 42(2), pages 278-304, April.

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    More about this item

    Keywords

    wage differentials; human capital; professional labor markets; graduate degrees; education and inequality; higher education; returns to education; cost-benefit analysis; earnings benefit;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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