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Differences in Early Occupational Earnings of UK Male Graduates by Degree Subject: Evidence from the 1980-1993 USR

Author

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  • Massimiliano BRATTI

    (Universit… di Milano, DEAS)

  • Luca MANCINI

    ([n.a.])

Abstract

This paper investigates the differences in early occupational earnings of UK male graduates by degree subject during the period 1980-1993. We match administrative student-level data from the Universities' Statistical Record (USR) and occupational earnings information from the New Earnings Survey (NES). The paper estimates relative earnings premia by degree subject using three alternative modelling approaches to control for student self-selection into university courses: i) a proxying and matching method, ii) a propensity score matching method, and iii) a simultaneous equations model of subject choice and earnings determination. Our analysis shows that there is a substantial amount of sample selection originating from unobservable student characteristics. The ranking of university subjects based on relative earnings premia is sensitive not only to the modelling approach but also to time, showing that analyses focusing on single-year data may not generalise to other periods.

Suggested Citation

  • Massimiliano BRATTI & Luca MANCINI, 2003. "Differences in Early Occupational Earnings of UK Male Graduates by Degree Subject: Evidence from the 1980-1993 USR," Working Papers 189, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    • Handle: RePEc:anc:wpaper:189
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    Cited by:

    1. Renato BALDUCCI, 2005. "Public Expenditure and Economic Growth. A critical extension of Barro's (1990) model," Working Papers 240, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. Wales, Philip, 2010. "Geography or economics? A micro-level analysis of the determinants of degree choice in the context of regional economic disparities in the UK," LSE Research Online Documents on Economics 33550, London School of Economics and Political Science, LSE Library.
    3. Nicola MATTEUCCI & Alessandro STERLACCHINI, 2003. "ICT and Employment Growth in Italian Industries," Working Papers 193, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    4. Paolo Buonanno & Dario Pozzoli, 2009. "Early Labour Market Returns to College Subject," LABOUR, CEIS, vol. 23(4), pages 559-588, December.
    5. Barbara S. Grave & Katja Goerlitz, 2012. "Wage differentials by field of study -- the case of German university graduates," Education Economics, Taylor & Francis Journals, vol. 20(3), pages 284-302, March.
    6. Johan N. M. Lagerlöf & Andrew J. Seltzer, 2009. "The Effects of Remedial Mathematics on the Learning of Economics: Evidence from a Natural Experiment," The Journal of Economic Education, Taylor & Francis Journals, vol. 40(2), pages 115-137, April.
    7. Chevalier, Arnaud, 2011. "Subject choice and earnings of UK graduates," Economics of Education Review, Elsevier, vol. 30(6), pages 1187-1201.
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    9. Ham, Roger & Junankar, Pramod N. (Raja) & Wells, Robert, 2009. "Occupational Choice: Personality Matters," IZA Discussion Papers 4105, Institute of Labor Economics (IZA).
    10. Lindsey Macmillan & Claire Tyler & Anna Vignoles, 2013. "Who gets the Top Jobs? The role of family background and networks in recent graduates' access to high status professions," DoQSS Working Papers 13-15, Quantitative Social Science - UCL Social Research Institute, University College London.
    11. Tran, Tuyen Quang & Van Vu, Huong, 2020. "Wage earning differentials by field of study: Evidence from Vietnamese university graduates," International Journal of Educational Development, Elsevier, vol. 78(C).
    12. Claire Crawford & Anna Vignoles, 2014. "Heterogeneity in graduate earnings by socio-economic background," IFS Working Papers W14/30, Institute for Fiscal Studies.
    13. Katja Görlitz & Barbara S. Grave, 2012. "Wage Differentials by Field of Study – The Case of German University Graduates," Ruhr Economic Papers 0316, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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    More about this item

    Keywords

    degree subject; earnings; graduates; self-selection; university;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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