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Income Differences Between PhDs and Masters: Evidence from The Netherlands

Author

Listed:
  • Bram Wouterse

    (CPB Netherlands Bureau for Economic Policy Analysis
    Erasmus University Rotterdam)

  • Karen Wiel

    (CPB Netherlands Bureau for Economic Policy Analysis
    IZA Institute of Labor Economics)

  • Marc Steeg

    (CPB Netherlands Bureau for Economic Policy Analysis
    Science and Culture)

Abstract

In this paper we investigate individual income differences between individuals with Master and PhD degrees over the first 20 years of a career. We compare monthly incomes of Dutch higher education graduates with the same years of experience, gender and field of study. It turns out that over the first 20 years of experience, the average annual return to a PhD education is not significantly different from zero. During the PhD track and the first years after PhD graduation PhDs earn less than Masters, but this is compensated by higher earnings in later years. Income differences differ strongly by sex.

Suggested Citation

  • Bram Wouterse & Karen Wiel & Marc Steeg, 2017. "Income Differences Between PhDs and Masters: Evidence from The Netherlands," De Economist, Springer, vol. 165(4), pages 439-461, December.
    • Handle: RePEc:kap:decono:v:165:y:2017:i:4:d:10.1007_s10645-017-9304-9
    DOI: 10.1007/s10645-017-9304-9
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    More about this item

    Keywords

    Returns to education; Doctoral programs; PhDs; Mincer regressions;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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