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Earnings and Community College Field of Study Choice in Canada

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Author Info
Boudarbat, Brahim () (University of British Columbia and IZA Bonn)

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Abstract

In this paper, we estimate a structural model of choice of field of study by community college students. We use data from the Canadian Survey of Graduates for 12,871 individuals who successfully completed their programs in Canadian community colleges (CEGEPs in Quebec) in 1990 and 1995. Over this period, the returns to fields such as health declined relative to other fields such as science and engineering, a fact that provides useful leverage for identifying the impact of earnings on the choice of field of study. Results indicate that the probability of selecting a specific college field of study depends significantly on expected earnings in this field relative to other fields. We also find that women put less weight on earnings than men when choosing a field of study and those students who were employed prior to starting college are more sensitive to earnings variations across fields of study than students with no prior work experience.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1156.

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Length: 37 pages
Date of creation: May 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1156

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Related research
Keywords: Canada; community college; field of study choice; selection bias;

Other versions of this item:

Find related papers by JEL classification:
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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References listed on IDEAS
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  1. Solomon William Polachek, 1978. "Sex differences in college major," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 31(4), pages 498-508, July.
  2. Mark C. Berger, 1988. "Predicted future earnings and choice of college major," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 41(3), pages 418-429, April.
  3. James V. Koch, 1972. "Student choice of undergraduate major field of study and private internal rates of return," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 26(1), pages 680-685, October.
  4. Willis, Robert J & Rosen, Sherwin, 1979. "Education and Self-Selection," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S7-36, October. [Downloadable!] (restricted)
    Other versions:
  5. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March. [Downloadable!] (restricted)
  6. Kane, Thomas J, 1994. "College Entry by Blacks since 1970: The Role of College Costs, Family Background, and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 878-911, October. [Downloadable!] (restricted)
  7. Montmarquette, Claude & Cannings, Kathy & Mahseredjian, Sophie, 2002. "How do young people choose college majors?," Economics of Education Review, Elsevier, vol. 21(6), pages 543-556, December. [Downloadable!] (restricted)
    Other versions:
  8. Willis, Robert J., 1987. "Wage determinants: A survey and reinterpretation of human capital earnings functions," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 10, pages 525-602 Elsevier. [Downloadable!] (restricted)
  9. François Bourguignon ; Martin Fournier ; Marc Gurgand, 2002. "Selection Bias Correction Based on the Multinomial Logit Model," Working Papers 2002-04, Centre de Recherche en Economie et Statistique. [Downloadable!]
  10. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-33, June. [Downloadable!] (restricted)
  11. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier. [Downloadable!] (restricted)
  12. David Card, 2000. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," NBER Working Papers 7769, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. Weiss, Yoram, 1971. "Investment in Graduate Education," American Economic Review, American Economic Association, vol. 61(5), pages 833-52, December. [Downloadable!] (restricted)
  14. Keane, Michael P & Wolpin, Kenneth I, 1997. "The Career Decisions of Young Men," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 473-522, June.
    Other versions:
  15. David A. Dodge & David A. A. Stager, 1972. "Economic Returns to Graduate Study in Science, Engineering and Business," Canadian Journal of Economics, Canadian Economics Association, vol. 5(2), pages 182-98, May. [Downloadable!] (restricted)
  16. Sarah E. Turner & William G. Bowen, 1999. "Choice of major: The changing (unchanging) gender gap," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 52(2), pages 289-313, January.
  17. Blakemore, Arthur E & Low, Stuart A, 1984. "Sex Differences in Occupational Selection: The Case of College Majors," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 157-63, February. [Downloadable!] (restricted)
  18. Francois Vaillancourt, 1995. "The Private and Total Returns to Education in Canada, 1985," Canadian Journal of Economics, Canadian Economics Association, vol. 28(3), pages 532-54, August. [Downloadable!] (restricted)
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