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College Quality and Earnings in the Japanese Labor Market

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  • Ono, Hiroshi

    ()
    (Texas A&M University)

Abstract

The motivations underlying the pursuit of college prestige in Japan presumes a labor market that rewards workers according to the quality of the college that they attended. Yet, studies that examine the relationship between college quality and earnings in Japan remain few and riddled with shortcomings. This paper examines the returns to college education among Japanese men. Using a 1995 cross-sectional data of Japanese workers, I find that college quality significantly improves earnings. My findings confirm that college quality plays a crucial role in shaping both incentives and earnings in the Japanese labor market. The paper also examines the so-called distinctive features of the Japanese labor market, and confirms the significant impact of tenure and firm-size on earnings, and the similarity in the earnings profiles between blue- and white-collar workers.

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File URL: http://swopec.hhs.se/hastef/papers/hastef0395.pdf
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Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 395.

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Length: 37 pages
Date of creation: 22 Aug 2000
Date of revision: 06 Sep 2000
Publication status: Published in Industrial Relations, 2004, pages 595-617.
Handle: RePEc:hhs:hastef:0395

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Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
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Keywords: human capital formation; returns to education;

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References

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  1. Rebick Marcus E., 1993. "The Persistence of Firm-Size Earnings Differentials and Labor Market Segmentation in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 7(2), pages 132-156, June.
  2. Griliches, Zvi & Mason, William M, 1972. "Education, Income, and Ability," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 80(3), pages S74-S103, Part II, .
  3. 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, MIT Press, MIT Press, vol. 117(4), pages 1491-1527, November.
  4. James, Estelle, et al, 1989. "College Quality and Future Earnings: Where Should You Send Your Child to College?," American Economic Review, American Economic Association, American Economic Association, vol. 79(2), pages 247-52, May.
  5. Loury, Linda Datcher & Garman, David, 1995. "College Selectivity and Earnings," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 13(2), pages 289-308, April.
  6. Hause, John C, 1971. "Ability and Schooling as Determinants of Lifetime Earnings or If You're So Smart, Why Aren't You Rich?," American Economic Review, American Economic Association, American Economic Association, vol. 61(2), pages 289-98, May.
  7. Behrman, Jere R & Birdsall, Nancy, 1983. "The Quality of Schooling: Quantity Alone is Misleading," American Economic Review, American Economic Association, American Economic Association, vol. 73(5), pages 928-46, December.
  8. Kato, Takao & Rockel, Mark, 1992. "Experiences, credentials, and compensation in the Japanese and U.S. managerial labor markets: Evidence from new micro data," Journal of the Japanese and International Economies, Elsevier, vol. 6(1), pages 30-51, March.
  9. Hashimoto, Masanori & Raisian, John, 1985. "Employment Tenure and Earnings Profiles in Japan and the United States," American Economic Review, American Economic Association, American Economic Association, vol. 75(4), pages 721-35, September.
  10. Kawashima, Yoko & Tachibanaki, Toshiaki, 1986. "The effect of discrimination and of industry segmentation on Japanese wage differentials in relation to education," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 4(1), pages 43-68, March.
  11. Lewis C. Solomon, 1975. "The Definition of College Quality and Its Impact on Earnings," NBER Chapters, National Bureau of Economic Research, Inc, in: Explorations in Economic Research, Volume 2, number 4, pages 537-587 National Bureau of Economic Research, Inc.
  12. Jacob Mincer & Yoshio Higuchi, 1987. "Wage Structures and Labor Turnover in the U.S. and in Japan," NBER Working Papers 2306, National Bureau of Economic Research, Inc.
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