IDEAS home Printed from https://ideas.repec.org/a/ucp/jlabec/doi10.1086-710959.html

The Labor Market Returns to Advanced Degrees

Author

Listed:
  • Joseph G. Altonji
  • Ling Zhong

Abstract

We estimate the returns to a broad set of graduate degrees. To control for heterogeneity in preferences and ability, we use fixed effects for combinations of field-specific undergraduate and graduate degrees obtained by the last time we observe an individual. Basically, we compare earnings before the graduate degree to earnings after it. Using National Science Foundation data, we find large differences across graduate fields in earnings effects. The returns often depend on the undergraduate major. The contribution of occupational upgrading to the earnings gain varies across degrees. Finally, simple regression-based estimates of returns to graduate fields are often highly misleading.

Suggested Citation

  • Joseph G. Altonji & Ling Zhong, 2021. "The Labor Market Returns to Advanced Degrees," Journal of Labor Economics, University of Chicago Press, vol. 39(2), pages 303-360.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/710959
    DOI: 10.1086/710959
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/710959
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/710959
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/710959?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhu,Yu & Xu, Lei, 2022. "Returns to Higher Education - Graduate and Discipline Premiums," GLO Discussion Paper Series 1091, Global Labor Organization (GLO).
    2. Anna Valero, 2021. "Education and management practices," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(2), pages 302-322.
    3. Boss, Daniel, 2023. "The Relationship Between the University Wage Premium and the Urban-Rural Divide in Australia," Warwick-Monash Economics Student Papers 56, Warwick Monash Economics Student Papers.
    4. Jungho Lee & Sunha Myong, 2026. "Self-financing, Parental Transfer, and College Education," Working papers 2026rwp-278, Yonsei University, Yonsei Economics Research Institute.
    5. Hennig, Jan-Luca, 2021. "Labor Market Polarization and Intergenerational Mobility: Theory and Evidence," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242353, Verein für Socialpolitik / German Economic Association.
    6. Carmen Aina & Daniela Sonedda, 2022. "Sooner or later? The impact of child education on household consumption," Empirical Economics, Springer, vol. 63(4), pages 2071-2099, October.
    7. Denning, Jeffrey T. & Turner, Lesley J., 2025. "The graduation part II: Graduate program graduation rates," Journal of Public Economics, Elsevier, vol. 248(C).
    8. Delaney, Judith M. & Devereux, Paul J., 2025. "Gender differences in graduate degree choices," Journal of Economic Behavior & Organization, Elsevier, vol. 230(C).
    9. Joseph G. Altonji & John Eric Humphries & Yagmur Yuksel & Ling Zhong, 2025. "Decomposing Trends in the Gender Gap for Highly Educated Workers," NBER Working Papers 34133, National Bureau of Economic Research, Inc.
    10. Christopher T. Bennett, 2023. "Labor Market Returns to MBAs From Less‐Selective Universities: Evidence From a Field Experiment During COVID‐19," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(2), pages 525-551, March.
    11. Daly, Moira & Jensen, Mathias Fjællegaard & le Maire, Daniel, 2022. "University Admission and the Similarity of Fields of Study: Effects on Earnings and Skill Usage," Labour Economics, Elsevier, vol. 75(C).
    12. Anna Valero, 2021. "Education and management practices," POID Working Papers 007, Centre for Economic Performance, LSE.
    13. Veronica Minaya & Judith Scott-Clayton & Rachel Yang Zhou, 2024. "Heterogeneity in Labor Market Returns to Master’s Degrees: Evidence from Ohio," Research in Higher Education, Springer;Association for Institutional Research, vol. 65(5), pages 775-793, August.
    14. Judith M. Delaney & Paul J. Devereux, 2022. "Gender Differences in STEM Persistence after Graduation," Economica, London School of Economics and Political Science, vol. 89(356), pages 862-883, October.
    15. Aucejo, Esteban M. & Hupkau, Claudia & Ruiz-Valenzuela, Jenifer, 2025. "Where versus what: college value-added and returns to field of study in further education," LSE Research Online Documents on Economics 118067, London School of Economics and Political Science, LSE Library.
    16. Eleonora Brandimarti, 2025. "Self-Selection, University Courses and Returns to Advanced Degrees," Papers 2511.09260, arXiv.org.
    17. Hugh Cassidy & Amanda Gaulke, 2024. "The increasing penalty to occupation‐education mismatch," Economic Inquiry, Western Economic Association International, vol. 62(2), pages 607-632, April.
    18. Jepsen, Christopher & Mueser, Peter & Troske, Kenneth & Jeon, Kyung-Seong, 2025. "Estimates of earnings returns by field of study for-profit schools and community colleges," Economics of Education Review, Elsevier, vol. 107(C).
    19. Sivropoulos-Valero, Anna Valero, 2021. "Education and management practices," LSE Research Online Documents on Economics 114436, London School of Economics and Political Science, LSE Library.
    20. Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2022. "Can perceived returns explain enrollment gaps in postgraduate education?," Labour Economics, Elsevier, vol. 77(C).
    21. Nichole Torpey-Saboe & Hee Song & Mindi Thompson, 2026. "Work-Based Learning and Early Career Outcomes: Evidence on Earnings, College-Level Employment, and Career Progression," Research in Higher Education, Springer;Association for Institutional Research, vol. 67(2), pages 1-30, March.
    22. Deborah M. Weiss & Matthew L. Spitzer & Colton Cronin & Neil Chin, 2024. "Why college majors and selectivity matter: Major groupings, occupation specificity, and job skills," Contemporary Economic Policy, Western Economic Association International, vol. 42(2), pages 278-304, April.

    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jlabec:doi:10.1086/710959. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JOLE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.