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High School Majors and Future Earnings

Author

Listed:
  • Gordon B. Dahl
  • Dan-Olof Rooth
  • Anders Stenberg

Abstract

We study how high school majors affect adult earnings using a regression discontinuity design. In Sweden students are admitted to majors in tenth grade based on their preference rankings and ninth grade GPA. We find engineering, natural science, and business majors yield higher earnings than social science and humanities, with major-specific returns also varying based on next-best alternatives. There is either a zero or a negative return to completing an academic program for students with a second-best nonacademic major. Most of the differences in adult earnings can be attributed to differences in occupation, and to a lesser extent, college major.

Suggested Citation

  • Gordon B. Dahl & Dan-Olof Rooth & Anders Stenberg, 2023. "High School Majors and Future Earnings," American Economic Journal: Applied Economics, American Economic Association, vol. 15(1), pages 351-382, January.
    • Handle: RePEc:aea:aejapp:v:15:y:2023:i:1:p:351-82
    DOI: 10.1257/app.20210292
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    Citations

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    Cited by:

    1. Stenberg, Anders & Tudor, Simona, 2023. "Field of Study and Mental Health in Adulthood," IZA Discussion Papers 16701, Institute of Labor Economics (IZA).
    2. Sarah Cattan & Kjell Salvanes & Emma Tominey, 2022. "First Generation Elite: The Role of School Networks," Working Papers 2022-028, Human Capital and Economic Opportunity Working Group.
    3. Aalto, Aino-Maija & Müller, Dagmar & Tilley, J. Lucas, 2023. "From epidemic to pandemic: Effects of the COVID-19 outbreak on high school program choices in Sweden," Labour Economics, Elsevier, vol. 82(C).
    4. Stenberg, Anders & Tudor, Simona, 2024. "Field of Study and Mental Health in Adulthood," Working Paper Series 1/2024, Stockholm University, Swedish Institute for Social Research.
    5. Bastani, Spencer & Karlsson, Kristina & Kolsrud, Jonas & Waldenström, Daniel, 2024. "The Capital Advantage: Comparing Returns to Ability in the Labor and Capital Markets," Working Papers in Economics and Statistics 1/2024, Linnaeus University, School of Business and Economics, Department of Economics and Statistics.

    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • 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

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