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Place of study, field of study and labour-market region: What matters for wage differences among higher-education graduates?

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  • Silvia Kopecny

    (University of Tübingen)

  • Steffen Hillmert

    (University of Tübingen)

Abstract

This paper focuses on the structure and extent of wage differences among graduates of different higher-education institutions in Germany. We ask how large these differences are and how they relate to fields of study and regional labour markets. The results from our application of cross-classified random-effects models to a cohort of the DZHW Graduate Panel show that there is a considerable amount of wage variation depending on the graduates’ alma mater. However, this variation can be fully explained by structural characteristics: Selection based on individual characteristics is of only minor importance, while regional labour markets do matter. Most of all, however, the differences relate to fields of study.

Suggested Citation

  • Silvia Kopecny & Steffen Hillmert, 2021. "Place of study, field of study and labour-market region: What matters for wage differences among higher-education graduates?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-21, December.
    • Handle: RePEc:spr:jlabrs:v:55:y:2021:i:1:d:10.1186_s12651-021-00301-4
    DOI: 10.1186/s12651-021-00301-4
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    Cited by:

    1. Yanming Li & Kangyin Lu & Kaiyuan Wang, 2021. "Inequality in the Initial Wage of College Graduates at the College-Level Perspective," Sustainability, MDPI, vol. 13(24), pages 1-15, December.
    2. Venera Timiryanova & Dina Krasnoselskaya & Natalia Kuzminykh, 2022. "Applying the Multilevel Approach in Estimation of Income Population Differences," Stats, MDPI, vol. 6(1), pages 1-32, December.

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    More about this item

    Keywords

    Wages; Higher-education institution; Fields of study; Regional labour markets; Multi-level analysis;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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