The Economic Returns to Field of Study and Competencies Among Higher Education Graduates in Ireland
This paper looks at the economic returns to different fields of study in Ireland in 2004 and also the value placed on various job-related competencies, accumulated on completion of higher education, in the Irish labour market. In examining these issues the paper seeks to control for potential selection influences by ensuring through quantile regression that comparisons are made within sections of the wage distribution where ability differences are likely to be minimal. The impact that education-job mismatch, both education-level and field, has on earnings is also taken into consideration. The results derived indicate that, relative to the base case, there are higher returns to Medicine & Veterinary, Education, Engineering & Architecture, Science and Computers & IT. The quantile regression analysis reveals that the OLS estimates are not particularly affected by unobserved heterogeneity bias. Furthermore, this approach indicates that field specific returns diminish the more able the graduate. Small but significant returns were found for some of the competencies analysed, in particular technical skills.
|Date of creation:||May 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (353-1) 863 2000
Fax: (353-1) 863 2100
Web page: http://www.esri.ieEmail:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
- James, Estelle, et al, 1989. "College Quality and Future Earnings: Where Should You Send Your Child to College?," American Economic Review, American Economic Association, vol. 79(2), pages 247-52, May.
- Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages F82-99, February.
- Robst, John, 2007. "Education and job match: The relatedness of college major and work," Economics of Education Review, Elsevier, vol. 26(4), pages 397-407, August.
- Finnie, Ross & Frenette, Marc, 2003. "Earning differences by major field of study: evidence from three cohorts of recent Canadian graduates," Economics of Education Review, Elsevier, vol. 22(2), pages 179-192, April.
- Thomas N. Daymonti & Paul J. Andrisani, 1984. "Job Preferences, College Major, and the Gender Gap in Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 19(3), pages 408-428.
- Ana I Moro-Egido & Santiago Budría, .
"Overeducation and Wages in Europe: Evidence from Quantile Regression,"
Studies on the Spanish Economy
- Ana I. Moro Egido & Santiago Budría, 2007. "Overeducation and Wages in Europe: Evidence from Quantile Regression," Economic Working Papers at Centro de Estudios Andaluces E2007/04, Centro de Estudios Andaluces.
- Buchinsky, Moshe, 1994. "Changes in the U.S. Wage Structure 1963-1987: Application of Quantile Regression," Econometrica, Econometric Society, vol. 62(2), pages 405-58, March.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, October.
- Kelly, Elish & McGuinness, Seamus & O'Connell, Philip J., 2009. "The Public-Private Sector Pay Gap in Ireland: What Lies Beneath?," Papers WP321, Economic and Social Research Institute (ESRI).
- Sloane, Peter J. & O'Leary, Nigel C., 2004.
"The Return to a University Education in Great Britain,"
IZA Discussion Papers
1199, Institute for the Study of Labor (IZA).
- Nigel C. Oâ€™Leary & Peter J. Sloane, 2005. "The Return to a University Education in Great Britain," National Institute Economic Review, National Institute of Economic and Social Research, vol. 193(1), pages 75-89, July.
- Arcidiacono, Peter, 2004.
"Ability sorting and the returns to college major,"
Journal of Econometrics,
Elsevier, vol. 121(1-2), pages 343-375.
- Seamus McGuinness, 2003. "University quality and labour market outcomes," Applied Economics, Taylor & Francis Journals, vol. 35(18), pages 1943-1955.
- Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, vol. 19(2), pages 179-198, April.
- S. Mcguinness, 2003. "Graduate overeducation as a sheepskin effect: evidence from Northern Ireland," Applied Economics, Taylor & Francis Journals, vol. 35(5), pages 597-608.
- McGuinness, Seamus & Bennett, Jessica, 2007. "Overeducation in the graduate labour market: A quantile regression approach," Economics of Education Review, Elsevier, vol. 26(5), pages 521-531, October.
- Jeff Grogger & Eric Eide, 1995. "Changes in College Skills and the Rise in the College Wage Premium," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 280-310.
- Altonji, Joseph G, 1993.
"The Demand for and Return to Education When Education Outcomes Are Uncertain,"
Journal of Labor Economics,
University of Chicago Press, vol. 11(1), pages 48-83, January.
- Joseph G. Altonji, 1991. "The Demand for and Return to Education When Education Outcomes are Uncertain," NBER Working Papers 3714, National Bureau of Economic Research, Inc.
- W. Norton Grubb, 1993. "The Varied Economic Returns to Postsecondary Education: New Evidence from the Class of 1972," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 365-382.
- O'Connell, Philip J. & Russell, Helen, 2006. "Does it Pay to Go Public? Public/Private Wage Differences among Recent Graduates in Ireland," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2006(3-Autumn), pages 64-79.
- Rumberger, Russell W. & Thomas, Scott L., 1993. "The economic returns to college major, quality and performance: A multilevel analysis of recent graduates," Economics of Education Review, Elsevier, vol. 12(1), pages 1-19, March.
- Russell W. Rumberger, 1980. "The Economic Decline of College Graduates: Fact or Fallacy?," Journal of Human Resources, University of Wisconsin Press, vol. 15(1), pages 99-112.
When requesting a correction, please mention this item's handle: RePEc:esr:wpaper:wp242. 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: (Sarah Burns)
If references are entirely missing, you can add them using this form.