[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/1091.html
   My bibliography  Save this paper

Returns to Higher Education - Graduate and Discipline Premiums

Author

Listed:
  • Zhu,Yu
  • Xu, Lei
Abstract
This chapter reviews and evaluates progress in recent research on the graduate premium in general as well as the differential graduate premiums by discipline, accounting for higher-education choice by individuals under substantial uncertainty. The contribution of this review, relative to previous reviews, is the collection of a wider variety of evidence that all bears on a relatively narrow issue, namely the graduate and discipline premiums, allowing for selection into undergraduate degree and degree subjects which include the option value of undertaking postgraduate degrees. The issue of subject-job match quality after graduation is only treated as a sensitivity check to the main results, due to concerns with self-selection. To avoid overlap with the more thematic chapters in this handbook which focus on HE structures and student financing respectively, this review only emphasizes that the sizes of the graduate and discipline premiums are context-specific, especially regarding how HE is structured and financed in a country, without going into details. Much higher weight is placed on the most up-to-date research that sheds light on the causal effects of higher-education and subject choice, and the conclusions are heavily driven by the best evidence rather than by consensus built around correlations. The chapter ends with a short summary of the empirical evidence and a brief discussion of possible areas for future research.

Suggested Citation

  • Zhu,Yu & Xu, Lei, 2022. "Returns to Higher Education - Graduate and Discipline Premiums," GLO Discussion Paper Series 1091, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1091
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/253730/1/GLO-DP-1091.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ofer Malamud, 2010. "Breadth versus Depth: The Timing of Specialization in Higher Education," LABOUR, CEIS, vol. 24(4), pages 359-390, December.
    2. Tyler Ransom, 2021. "Selective Migration, Occupational Choice, and the Wage Returns to College Majors," Annals of Economics and Statistics, GENES, issue 142, pages 45-110.
    3. Arcidiacono, Peter & Hotz, V. Joseph & Kang, Songman, 2012. "Modeling college major choices using elicited measures of expectations and counterfactuals," Journal of Econometrics, Elsevier, vol. 166(1), pages 3-16.
    4. Peter Arcidiacono & Esteban M. Aucejo & V. Joseph Hotz, 2016. "University Differences in the Graduation of Minorities in STEM Fields: Evidence from California," American Economic Review, American Economic Association, vol. 106(3), pages 525-562, March.
    5. Christopher Jepsen & Kenneth Troske & Paul Coomes, 2014. "The Labor-Market Returns to Community College Degrees, Diplomas, and Certificates," Journal of Labor Economics, University of Chicago Press, vol. 32(1), pages 95-121.
    6. Walker, Ian & Zhu, Yu, 2018. "University selectivity and the relative returns to higher education: Evidence from the UK," Labour Economics, Elsevier, vol. 53(C), pages 230-249.
    7. Joseph G. Altonji & Ling Zhong, 2021. "The Labor Market Returns to Advanced Degrees," Journal of Labor Economics, University of Chicago Press, vol. 39(2), pages 303-360.
    8. Delaney, Judith M. & Devereux, Paul J., 2021. "High School Rank in Math and English and the Gender Gap in STEM," Labour Economics, Elsevier, vol. 69(C).
    9. Fricke, Hans & Grogger, Jeffrey & Steinmayr, Andreas, 2018. "Exposure to academic fields and college major choice," Economics of Education Review, Elsevier, vol. 64(C), pages 199-213.
    10. Joseph G. Altonji & Erica Blom & Costas Meghir, 2012. "Heterogeneity in Human Capital Investments: High School Curriculum, College Major, and Careers," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 185-223, July.
    11. Juanna Schrøter Joensen & Helena Skyt Nielsen, 2009. "Is there a Causal Effect of High School Math on Labor Market Outcomes?," Journal of Human Resources, University of Wisconsin Press, vol. 44(1).
    12. Jiang, Xuan, 2021. "Women in STEM: Ability, preference, and value," Labour Economics, Elsevier, vol. 70(C).
    13. Baker, Rachel & Bettinger, Eric & Jacob, Brian & Marinescu, Ioana, 2018. "The Effect of Labor Market Information on Community College Students’ Major Choice," Economics of Education Review, Elsevier, vol. 65(C), pages 18-30.
    14. Leighton, Margaret & Speer, Jamin D., 2020. "Labor market returns to college major specificity," European Economic Review, Elsevier, vol. 128(C).
    15. Maragkou, Konstantina, 2020. "Socio-economic inequality and academic match among post-compulsory education participants," Economics of Education Review, Elsevier, vol. 79(C).
    16. Kane, Thomas J & Rouse, Cecilia Elena, 1995. "Labor-Market Returns to Two- and Four-Year College," American Economic Review, American Economic Association, vol. 85(3), pages 600-614, June.
    17. Josh Kinsler & Ronni Pavan, 2015. "The Specificity of General Human Capital: Evidence from College Major Choice," Journal of Labor Economics, University of Chicago Press, vol. 33(4), pages 933-972.
    18. Francesconi, Marco & Parey, Matthias, 2018. "Early gender gaps among university graduates," European Economic Review, Elsevier, vol. 109(C), pages 63-82.
    19. Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2012. "The Short- and Long-Term Career Effects of Graduating in a Recession," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 1-29, January.
    20. Basit Zafar, 2011. "How Do College Students Form Expectations?," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 301-348.
    21. Erica Blom & Brian C. Cadena & Benjamin J. Keys, 2021. "Investment over the Business Cycle: Insights from College Major Choice," Journal of Labor Economics, University of Chicago Press, vol. 39(4), pages 1043-1082.
    22. Nick Huntington‐Klein, 2018. "College Choice As A Collective Decision," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 1202-1219, April.
    23. Ralph Stinebrickner & Todd R. Stinebrickner, 2014. "A Major in Science? Initial Beliefs and Final Outcomes for College Major and Dropout," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 426-472.
    24. Stacy Berg Dale & Alan B. Krueger, 2002. "Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1491-1527.
    25. Seth D. Zimmerman, 2014. "The Returns to College Admission for Academically Marginal Students," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 711-754.
    26. Somani, Ravi, 2021. "The returns to higher education and public employment," World Development, Elsevier, vol. 144(C).
    27. Walker, Ian & Zhu, Yu, 2011. "Differences by degree: Evidence of the net financial rates of return to undergraduate study for England and Wales," Economics of Education Review, Elsevier, vol. 30(6), pages 1177-1186.
    28. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-1160, September.
    29. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    30. Ofer Malamud, 2007. "Breadth vs. Depth: The Timing of Specialization in Higher Education," Working Papers 0808, Harris School of Public Policy Studies, University of Chicago.
    31. Seah, Kelvin K.C. & Pan, Jessica & Tan, Poh Lin, 2020. "Breadth of university curriculum and labor market outcomes," Labour Economics, Elsevier, vol. 65(C).
    32. Lindley, Joanne & McIntosh, Steven, 2015. "Growth in within graduate wage inequality: The role of subjects, cognitive skill dispersion and occupational concentration," Labour Economics, Elsevier, vol. 37(C), pages 101-111.
    33. Carroll, David & Tani, Massimiliano, 2013. "Over-education of recent higher education graduates: New Australian panel evidence," Economics of Education Review, Elsevier, vol. 32(C), pages 207-218.
    34. Kyui, Natalia & Radchenko, Natalia, 2021. "The changing composition of academic majors and wage dynamics: Beyond mean returns," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 358-381.
    35. Rodney J. Andrews & Kevin M. Stange, 2019. "Price Regulation, Price Discrimination, and Equality of Opportunity in Higher Education: Evidence from Texas," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 31-65, November.
    36. Zheng, Yanqiao & Zhang, Xiaoqi & Zhu, Yu, 2021. "Overeducation, major mismatch, and return to higher education tiers: Evidence from novel data source of a major online recruitment platform in China," China Economic Review, Elsevier, vol. 66(C).
    37. Lucas C. Coffman & Clayton R. Featherstone & Judd B. Kessler, 2017. "Can Social Information Affect What Job You Choose and Keep?," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 96-117, January.
    38. Jeff Grogger & Eric Eide, 1995. "Changes in College Skills and the Rise in the College Wage Premium," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 280-310.
    39. Philip Oreopoulos & Uros Petronijevic, 2013. "Making College Worth It: A Review of Research on the Returns to Higher Education," NBER Working Papers 19053, National Bureau of Economic Research, Inc.
    40. Bartolj, Tjaša & Polanec, Sašo, 2012. "College major choice and ability: Why is general ability not enough?," Economics of Education Review, Elsevier, vol. 31(6), pages 996-1016.
    41. Robst, John, 2007. "Education and job match: The relatedness of college major and work," Economics of Education Review, Elsevier, vol. 26(4), pages 397-407, August.
    42. Speer, Jamin D., 2021. "Bye Bye Ms. American Sci: Women and the Leaky STEM Pipeline," IZA Discussion Papers 14676, Institute of Labor Economics (IZA).
    43. Robst, John & VanGilder, Jennifer, 2016. "Salary and job satisfaction among economics and business graduates: The effect of match between degree field and job," International Review of Economics Education, Elsevier, vol. 21(C), pages 30-40.
    44. Xia, Xiaoyu, 2016. "Forming wage expectations through learning: Evidence from college major choices," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 176-196.
    45. Joshua D. Angrist & Stacey H. Chen, 2011. "Schooling and the Vietnam-Era GI Bill: Evidence from the Draft Lottery," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 96-118, April.
    46. Buchmueller, Gerda & Walker, Ian, 2020. "The Graduate Wage and Earnings Premia and the Role of Non-Cognitive Skills," IZA Discussion Papers 13248, Institute of Labor Economics (IZA).
    47. Mark Hoekstra, 2009. "The Effect of Attending the Flagship State University on Earnings: A Discontinuity-Based Approach," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 717-724, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arpita Patnaik & Matthew J. Wiswall & Basit Zafar, 2020. "College Majors," NBER Working Papers 27645, National Bureau of Economic Research, Inc.
    2. Lars Kirkebøen & Edwin Leuven & Magne Mogstad, 2014. "Field of Study, Earnings, and Self-Selection," NBER Working Papers 20816, National Bureau of Economic Research, Inc.
    3. Jack Mountjoy & Brent Hickman, 2020. "The Returns to College(s): Estimating Value-Added and Match Effects in Higher Education," Working Papers 2020-08, Becker Friedman Institute for Research In Economics.
    4. Rodney J. Andrews & Scott A. Imberman & Michael F. Lovenheim, 2017. "Risky Business? The Effect of Majoring in Business on Earnings and Educational Attainment," NBER Working Papers 23575, National Bureau of Economic Research, Inc.
    5. Peter Arcidiacono & Esteban M. Aucejo & V. Joseph Hotz, 2016. "University Differences in the Graduation of Minorities in STEM Fields: Evidence from California," American Economic Review, American Economic Association, vol. 106(3), pages 525-562, March.
    6. Fricke, Hans & Grogger, Jeffrey & Steinmayr, Andreas, 2018. "Exposure to academic fields and college major choice," Economics of Education Review, Elsevier, vol. 64(C), pages 199-213.
    7. Peter Arcidiacono & Michael Lovenheim, 2016. "Affirmative Action and the Quality-Fit Trade-Off," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 3-51, March.
    8. Justine Hastings & Christopher A. Neilson & Seth D. Zimmerman, 2015. "The Effects of Earnings Disclosure on College Enrollment Decisions," Working Papers 2015-1, Princeton University. Economics Department..
    9. Joseph G. Altonji & Peter Arcidiacono & Arnaud Maurel, 2015. "The Analysis of Field Choice in College and Graduate School: Determinants and Wage Effects," NBER Working Papers 21655, National Bureau of Economic Research, Inc.
    10. 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.
    11. Berlingieri, Francesco & Zierahn, Ulrich, 2014. "Field of study, qualification mismatch, and wages: Does sorting matter?," ZEW Discussion Papers 14-076, ZEW - Leibniz Centre for European Economic Research.
    12. Britton, Jack & van der Erve, Laura & Belfield, Chris & Vignoles, Anna & Dickson, Matt & Zhu, Yu & Walker, Ian & Dearden, Lorraine & Sibieta, Luke & Buscha, Franz, 2022. "How much does degree choice matter?," Labour Economics, Elsevier, vol. 79(C).
    13. Light, Audrey & Wertz, Sydney Schreiner, 2022. "Should English majors take computer science courses? Labor market benefits of the occupational specificity of major and nonmajor college credits," Economics of Education Review, Elsevier, vol. 88(C).
    14. Luc Bridet & Margaret Leighton, 2015. "The Major Decision: Labor Market Implications of the Timing of Specialization in College," Discussion Paper Series, School of Economics and Finance 201510, School of Economics and Finance, University of St Andrews.
    15. Ralph Stinebrickner & Todd R. Stinebrickner, 2014. "A Major in Science? Initial Beliefs and Final Outcomes for College Major and Dropout," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 426-472.
    16. Erica Blom & Brian C. Cadena & Benjamin J. Keys, 2021. "Investment over the Business Cycle: Insights from College Major Choice," Journal of Labor Economics, University of Chicago Press, vol. 39(4), pages 1043-1082.
    17. Douglas Webber, 2014. "Is the return to education the same for everybody?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-92, October.
    18. Webber, Douglas A., 2016. "Are college costs worth it? How ability, major, and debt affect the returns to schooling," Economics of Education Review, Elsevier, vol. 53(C), pages 296-310.
    19. Joshua Goodman, 2019. "The Labor of Division: Returns to Compulsory High School Math Coursework," Journal of Labor Economics, University of Chicago Press, vol. 37(4), pages 1141-1182.
    20. Aguirre, Josefa & Matta, Juan, 2021. "Walking in your footsteps: Sibling spillovers in higher education choices," Economics of Education Review, Elsevier, vol. 80(C).

    More about this item

    Keywords

    graduate premium; discipline premiums; higher-education choice; subject-job match; causal effects;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:1091. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.