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Industry Choice and within Industry Earnings Effects

Author

Listed:
  • Eric Brunner

    (University of Connecticut)

  • Shaun Dougherty

    (Boston College)

  • Stephen L. Ross

    (University of Connecticut)

Abstract

We examine the effect of attending stand-alone technical high schools on the industry of employment choices and within industry earnings premiums of young adults using a regression discontinuity design. Our analysis is based on the universe of students that applied to the Connecticut Technical Education and Career System (CTECS) between 2006 and 2011. Admission to a CTECS school shifts male applicants towards working in higher paying industries that align with CTECS course work and programs of study. Admission to a CTECS school has a much more modest impact on the industry of employment for female applicants. Further, key industry effects observed for females shift these applicants towards lower paying industries. Surprisingly, both the overall industry earnings premiums and the treatment effects of CTECS on earnings premiums are similar and sometimes larger for female applicants in traditionally male dominated industries like manufacturing and construction. However, the number of females in these industries is too small to contribute substantially to female earnings in aggregate. Our mechanism analysis suggests that treatment effects on industry specific earnings premium vary across industries. In particular, for male applicants, treatment effects in the manufacturing and construction industry depend in part on work experience while in high school and as a young adult. Finally, we find that in the professional and office support industries CTECS treatment effects on earnings arise due to the selection into these industries of students with high 8th grade tests scores because these industries offer a higher direct return to cognitive skills for young adults.

Suggested Citation

  • Eric Brunner & Shaun Dougherty & Stephen L. Ross, 2022. "Industry Choice and within Industry Earnings Effects," Working Papers 2022-025, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2022-025
    Note: MIP
    as

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    File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Brunner_Dougherty_Ross_2022_industry-choice-within-industry-earning.pdf
    File Function: First version, August 22, 2022
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    Cited by:

    1. Dai, Li & Martins, Pedro S., 2024. "The Wage Effects of Polytechnic Degrees: Evidence from the 1999 China Higher Education Expansion," GLO Discussion Paper Series 1399, Global Labor Organization (GLO).

    More about this item

    Keywords

    technical high school; earnings premiums; young adults; regression discontinuity design;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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