IDEAS home Printed from https://ideas.repec.org/p/esj/esridp/310.html
   My bibliography  Save this paper

The Postgraduate Wage Premium: Estimating the Age-Wage Profiles Using 2007 Employment Status Survey(in Japanese)

Author

Listed:
  • KAKIZAWA Hisanobu
  • HIRAO Tomotaka
  • MATSUSHIGE Hisakazu
  • YAMASAKI Izumi
  • INUI Tomohiko

Abstract

Many people have been skeptical about the economic value of going to graduate school in Japan. However, there are few empirical studies to analyze this issue. This paper estimates the private internal rate of return to postgraduate education and assesses the postgraduate wage premium in Japan. In particular, the study illustrates how much the payroll systems of companies and institutions favor postgraduate graduates over college graduates by analyzing the age-wage profiles of workers who continuously work for the same employers after they graduate. The comparison of the age-wage profiles of college degree holders and postgraduate degree holders reveals that the lifetime wage income is higher among those with postgraduate degrees than among those who have college degrees both for males and females. The wages of postgraduate graduates continue to rise as they get older, which widens the wage gap with college graduates. The internal rates of return to master’s degrees are 11.4% for males and 10.1% for females, while the ones to Ph.Ds are 5.9% for males and 5.7% for females. The paper therefore shows the significant postgraduate wage premium over college graduates.

Suggested Citation

  • KAKIZAWA Hisanobu & HIRAO Tomotaka & MATSUSHIGE Hisakazu & YAMASAKI Izumi & INUI Tomohiko, 2014. "The Postgraduate Wage Premium: Estimating the Age-Wage Profiles Using 2007 Employment Status Survey(in Japanese)," ESRI Discussion paper series 310, Economic and Social Research Institute (ESRI).
  • Handle: RePEc:esj:esridp:310
    as

    Download full text from publisher

    File URL: http://www.esri.go.jp/jp/archive/e_dis/e_dis310/e_dis310.pdf
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:esj:esridp:310. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (KAWAMOTO Takuma). General contact details of provider: http://edirc.repec.org/data/esrgvjp.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.