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Labor Market Outcomes for Doctoral Graduates in Japan: Evidence from a large statistical survey

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  • Masayuki MORIKAWA

Abstract

Amid concerns about Japan’s declining research capability, policies to support doctoral human resources are actively discussed. This study uses micro data from the 2022 Employment Status Survey to analyze the labor market outcomes of postgraduates by dividing them into doctoral and master’s graduates. According to the analysis, first, the employment rate of doctoral graduates is higher than that of master’s graduates, and the difference is particularly large for females. Second, doctoral graduates are paid 40% more than master’s graduates. Third, controlling for detailed industries and occupations, the wage difference between doctoral and master’s graduates reduces to about 10%. This suggests that doctoral graduates self-select into higher-paying industries and occupations. Fourth, the discounted present value of lifetime earnings for doctoral graduates is 17% higher for male and 36% higher for female than for master’s graduates. The estimated internal rate of return on investment in doctoral education is around 10% for both males and females.

Suggested Citation

  • Masayuki MORIKAWA, 2024. "Labor Market Outcomes for Doctoral Graduates in Japan: Evidence from a large statistical survey," Discussion papers 24081, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:24081
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    References listed on IDEAS

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    1. Fumihiko Suga, 2020. "The returns to postgraduate education in Japan," The Japanese Economic Review, Springer, vol. 71(4), pages 571-596, October.
    2. Walker, Ian & Zhu, Yu, 2011. "Differences by degree: Evidence of the net financial rates of return to undergraduate study for England and Wales," Economics of Education Review, Elsevier, vol. 30(6), pages 1177-1186.
    3. Graham, John W. & Smith, Steven A., 2005. "Gender differences in employment and earnings in science and engineering in the US," Economics of Education Review, Elsevier, vol. 24(3), pages 341-354, June.
    4. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    5. Masayuki Morikawa, 2015. "Postgraduate Education and Labor Market Outcomes: An Empirical Analysis Using Micro Data from Japan," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(3), pages 499-520, July.
    6. Song, Moohoun & Orazem, Peter F. & Wohlgemuth, Darin, 2008. "The role of mathematical and verbal skills on the returns to graduate and professional education," Economics of Education Review, Elsevier, vol. 27(6), pages 664-675, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • 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

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