Returns to Higher Education – Graduate and Discipline Premiums. A new GLO Discussion Paper by GLO Fellows Yu Zhu & Xu Lei.

A new GLO Discussion Paper reviews the most up-to-date research that sheds light on the causal effects of higher-education and subject choice.

GLO Discussion Paper No. 1091, 2022

Returns to Higher Education – Graduate and Discipline Premiums  Download PDF
by Zhu, Yu & Xu, Lei

GLO Fellows Yu Zhu & Xu Lei

Author 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.

Featured image: Mikael-Kristenson-on-Unsplash

RELATED WORK

Higher Education Expansion and the Rise of China in Economics Research” by Matloob Piracha, Massimiliano Tani, Klaus F. Zimmermann & Yu Zhang. China Economic Review 74 (2022) 101813. Published FREE OPEN ACCESS. Free PDF

Higher Education Expansion and Gender Norms: Evidence from China by Wei Shi. Journal of Population Economics (2022). https://doi.org/10.1007/s00148-022-00888-z FREE OPEN ACCESS.

GLO DP 1092 Returns to Education in China: Evidence from the Great Higher Education Expansion  Download PDF by Bin Huang, Massimiliano Tani, Yi Wei & Yu Zhu

JUST PUBLISHED
Vol. 35, Issue 3, July 2022: Journal of Population Economics: 15 articles
https://link.springer.com/journal/148/volumes-and-issues/35-3

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

Ends;