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PhD Graduates with Post-doctoral Qualification in the Private Sector: Does It Pay Off?

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  • Isabelle Recotillet
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    Abstract

    In this paper, we address the question of the early careers of French PhD graduates in science and engineering sciences in 1996. Post-doctoral training was initially developed for PhD graduates wishing to embark on a career in the public sector. However, a large proportion of post-doctorate graduates turn to the private sector, and in particular to occupations that do not involve research. The question we raise is that of the wage premium on post-doctoral training. To control for selection bias arising in the case where unobservable elements are correlated between participation and wages, we first estimate a treatment effect model. The main finding is that when selection bias is not controlled for, post-doctoral participation increases earnings; however, when selection bias is controlled for, the participation in a post-doctoral programme has no positive effect. With regards to this finding we show that post-doctoral programmes play much more the role of a signal in the first stage of a career. This finding is also reinforced when we use a bivariate selection rule to control for the endogenous nature of having been recruited in the private sector. Copyright 2007 The Author; Journal compilation 2007 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd..

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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9914.2007.00385.x
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    Bibliographic Info

    Article provided by CEIS in its journal LABOUR.

    Volume (Year): 21 (2007)
    Issue (Month): 3 (09)
    Pages: 473-502

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    Handle: RePEc:bla:labour:v:21:y:2007:i:3:p:473-502

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    Cited by:
    1. Marc van der Steeg & Karen van der Wiel & Bram Wouterse, 2014. "Individual Returns to a PhD Education in the Netherlands: Income Differences between Masters and PhDs," CPB Discussion Paper 276, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Claire Bonnard, 2012. "The Access of the Young Graduates in Sciences into R&D Profession: A Switching Model Treatment for the French Case," LABOUR, CEIS, vol. 26(1), pages 46-65, 03.

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