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College Selectivity, Choice of Major, and Post-College Earnings

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  • William Brian Muse

    (Mathematics department, Columbus State University, Columbus, USA)

  • Iryna Muse

    (Assistant Vice Chancellor, University of Alabama, Tuscaloosa, USA)

Abstract

College choice and choice of major are the most important decisions for future earnings. It is still unclear, however, what makes a greater difference—college or major—or whether a choice of college matters more for some majors, but not the others. Using cross-classified models and College Scorecard data, I show that a discipline is more consequential for future earnings than a college. The effect of STEM is substantial but is less pronounced at institutions with higher overall median earnings. The effect of college selectivity on earnings is more pronounced for non-STEM disciplines. Institutional characteristics—such as tuition, shares of graduates receiving different forms of financial aid, institutional size and location, and type of college—correlate with earnings of graduates. Racial and gender composition of an educational program correlate with expected earnings of its graduates even after control for other institutional and disciplinary characteristics. Models presented here provide a better understanding of the effect of college and major choices on future earnings.

Suggested Citation

  • William Brian Muse & Iryna Muse, 2024. "College Selectivity, Choice of Major, and Post-College Earnings," Journal of Economic Analysis, Anser Press, vol. 3(2), pages 33-51, June.
    • Handle: RePEc:bba:j00001:v:3:y:2024:i:2:p:33-51:d:175
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    References listed on IDEAS

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    1. Eric R. Eide & Michael J. Hilmer & Mark H. Showalter, 2016. "Is It Where You Go Or What You Study? The Relative Influence Of College Selectivity And College Major On Earnings," Contemporary Economic Policy, Western Economic Association International, vol. 34(1), pages 37-46, January.
    2. Dominic J. Brewer & Eric R. Eide & Ronald G. Ehrenberg, 1999. "Does It Pay to Attend an Elite Private College? Cross-Cohort Evidence on the Effects of College Type on Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 34(1), pages 104-123.
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