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The lifetime earnings premia of different majors: Correcting for selection based on cognitive, noncognitive, and unobserved factors

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  • Webber, Douglas A.

Abstract

This paper constructs a simulation approach to estimate the lifetime returns to various college majors. I use data from the 1979 cohort of the National Longitudinal Survey of Youth and American Community Survey to estimate the parameters which form the backbone of the simulation. I address selection into both higher education and specific major categories using measures of cognitive and noncognitive ability. Additionally, I present the lifetime premia under various assumptions regarding the magnitude of unobservable sorting.

Suggested Citation

  • Webber, Douglas A., 2014. "The lifetime earnings premia of different majors: Correcting for selection based on cognitive, noncognitive, and unobserved factors," Labour Economics, Elsevier, vol. 28(C), pages 14-23.
    • Handle: RePEc:eee:labeco:v:28:y:2014:i:c:p:14-23
    DOI: 10.1016/j.labeco.2014.03.009
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    Keywords

    Return to education; Major choice;

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