IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp1156.html
   My bibliography  Save this paper

Earnings and Community College Field of Study Choice in Canada

Author

Listed:
  • Boudarbat, Brahim

    (University of Montreal)

Abstract

In this paper, we estimate a structural model of choice of field of study by community college students. We use data from the Canadian Survey of Graduates for 12,871 individuals who successfully completed their programs in Canadian community colleges (CEGEPs in Quebec) in 1990 and 1995. Over this period, the returns to fields such as health declined relative to other fields such as science and engineering, a fact that provides useful leverage for identifying the impact of earnings on the choice of field of study. Results indicate that the probability of selecting a specific college field of study depends significantly on expected earnings in this field relative to other fields. We also find that women put less weight on earnings than men when choosing a field of study and those students who were employed prior to starting college are more sensitive to earnings variations across fields of study than students with no prior work experience.

Suggested Citation

  • Boudarbat, Brahim, 2004. "Earnings and Community College Field of Study Choice in Canada," IZA Discussion Papers 1156, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp1156
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp1156.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Willis, Robert J & Rosen, Sherwin, 1979. "Education and Self-Selection," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 7-36, October.
    2. Willis, Robert J., 1987. "Wage determinants: A survey and reinterpretation of human capital earnings functions," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 10, pages 525-602, Elsevier.
    3. Weiss, Yoram, 1971. "Investment in Graduate Education," American Economic Review, American Economic Association, vol. 61(5), pages 833-852, December.
    4. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    5. Blakemore, Arthur E & Low, Stuart A, 1984. "Sex Differences in Occupational Selection: The Case of College Majors," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 157-163, February.
    6. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    7. Julian R. Betts & Laurel L. McFarland, 1995. "Safe Port in a Storm: The Impact of Labor Market Conditions on Community College Enrollments," Journal of Human Resources, University of Wisconsin Press, vol. 30(4), pages 741-765.
    8. Montmarquette, Claude & Cannings, Kathy & Mahseredjian, Sophie, 2002. "How do young people choose college majors?," Economics of Education Review, Elsevier, vol. 21(6), pages 543-556, December.
    9. James V. Koch, 1972. "Student Choice of Undergraduate Major Field of Study and Private Internal Rates of Return," ILR Review, Cornell University, ILR School, vol. 26(1), pages 680-685, October.
    10. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
    11. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    12. Montmarquette, Claude & Mourji, Fouzi & Mahseredjian, Sophie, 1998. "Les choix de filières universitaires par les lycéens marocains : préférences et contraintes," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(3), pages 485-522, septembre.
    13. David A. Dodge & David A. A. Stager, 1972. "Economic Returns to Graduate Study in Science, Engineering and Business," Canadian Journal of Economics, Canadian Economics Association, vol. 5(2), pages 182-198, May.
    14. Keane, Michael P & Wolpin, Kenneth I, 1997. "The Career Decisions of Young Men," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 473-522, June.
    15. Lee, Lung-fei & Maddala, G S & Trost, R P, 1980. "Asymptotic Covariance Matrices of Two-Stage Probit and Two-Stage Tobit Methods for Simultaneous Equations Models with Selectivity," Econometrica, Econometric Society, vol. 48(2), pages 491-503, March.
    16. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
    17. Solomon William Polachek, 1978. "Sex Differences in College Major," ILR Review, Cornell University, ILR School, vol. 31(4), pages 498-508, July.
    18. Francois Vaillancourt, 1995. "The Private and Total Returns to Education in Canada, 1985," Canadian Journal of Economics, Canadian Economics Association, vol. 28(3), pages 532-554, August.
    19. 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.
    20. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-1160, September.
    21. Kane, Thomas J, 1994. "College Entry by Blacks since 1970: The Role of College Costs, Family Background, and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 878-911, October.
    22. François Bourguignon & Martin Fournier & Marc Gurgand, 2002. "Selection Bias Correction Based on the Multinomial Logit Model," Working Papers 2002-04, Center for Research in Economics and Statistics.
    23. Sarah E. Turner & William G. Bowen, 1999. "Choice of Major: The Changing (Unchanging) Gender Gap," ILR Review, Cornell University, ILR School, vol. 52(2), pages 289-313, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Emanuelle Bourbeau & Pierre Lefebvre & Philip Merrigan, 2011. "Provincial Returns to Education for 21 to 35 year-olds: Results from the 1991-2006 Canadian Analytic Censuses Files," Cahiers de recherche 1106, CIRPEE.
    2. Tacsir, Ezequiel, 2010. "Choosing a career in Science and Technology," MERIT Working Papers 2010-014, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Boudarbat, Brahim & Montmarquette, Claude, 2007. "Choice of Fields of Study of Canadian University Graduates: The Role of Gender and their Parents’ Education," IZA Discussion Papers 2552, Institute of Labor Economics (IZA).
    4. Pierre Lefebvre & Philip Merrigan, 2010. "Labour Outcomes of Graduates and Dropouts of High School and Post-secondary Education: Evidence for Canadian 24- to 26-year-olds in 2005," Cahiers de recherche 1045, CIRPEE.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boudarbat, Brahim, 2008. "Field of study choice by community college students in Canada," Economics of Education Review, Elsevier, vol. 27(1), pages 79-93, February.
    2. Boudarbat, Brahim & Montmarquette, Claude, 2007. "Choice of Fields of Study of Canadian University Graduates: The Role of Gender and their Parents’ Education," IZA Discussion Papers 2552, Institute of Labor Economics (IZA).
    3. Gunderson, Morley & Krashinsky, Harry, 2009. "Do Education Decisions Respond to Returns by Field of Study?," CLSSRN working papers clsrn_admin-2009-62, Vancouver School of Economics, revised 28 Nov 2009.
    4. Freeman, James A. & Hirsch, Barry T., 2008. "College majors and the knowledge content of jobs," Economics of Education Review, Elsevier, vol. 27(5), pages 517-535, October.
    5. John B. Burbidge & Kirk A. Collins & James B. Davies & Lonnie Magee, 2012. "Effective tax and subsidy rates on human capital in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 45(1), pages 189-219, February.
    6. Fabiola Saavedra & Mónica Ospina, 2014. "Decisions about Postsecondary Education, their returns in Colombia," Documentos de Trabajo de Valor Público 12542, Universidad EAFIT.
    7. Lutz Hendricks & Oksana Leukhina, 2018. "The Return To College: Selection And Dropout Risk," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(3), pages 1077-1102, August.
    8. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
    9. Aakvik, Arild & Salvanes, Kjell G. & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," IZA Discussion Papers 815, Institute of Labor Economics (IZA).
    10. Bhuller, Manudeep & Mogstad, Magne & Salvanes, Kjell G., 2011. "Life-Cycle Bias and the Returns to Schooling in Current and Lifetime Earnings," IZA Discussion Papers 5788, Institute of Labor Economics (IZA).
    11. Pedro Carneiro & Michael Lokshin & Nithin Umapathi, 2017. "Average and Marginal Returns to Upper Secondary Schooling in Indonesia," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(1), pages 16-36, January.
    12. Pedro Carneiro & James J. Heckman & Edward J. Vytlacil, 2011. "Estimating Marginal Returns to Education," American Economic Review, American Economic Association, vol. 101(6), pages 2754-2781, October.
    13. Tsunao Okumura & Emiko Usui, 2014. "Concave‐monotone treatment response and monotone treatment selection: With an application to the returns to schooling," Quantitative Economics, Econometric Society, vol. 5, pages 175-194, March.
    14. Arcidiacono, Peter, 2004. "Ability sorting and the returns to college major," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 343-375.
    15. Belzil, Christian & Hansen, Jorgen, 2007. "A structural analysis of the correlated random coefficient wage regression model," Journal of Econometrics, Elsevier, vol. 140(2), pages 827-848, October.
    16. Osikominu, Aderonke & Grossmann, Volker & Osterfeld, Marius, 2014. "Are Sociocultural Factors Important for Studying a Science University Major?," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100404, Verein für Socialpolitik / German Economic Association.
    17. Saule Kemelbayeva, 2020. "Returns to schooling in Kazakhstan: an update using a pseudo-panel approach," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(3), pages 437-487, September.
    18. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    19. Aderonke Osikominu & Volker Grossmann & Marius Osterfeld, 2020. "Sociocultural background and choice of STEM majors at university," Oxford Economic Papers, Oxford University Press, vol. 72(2), pages 347-369.
    20. Belzil, Christian, 2007. "The return to schooling in structural dynamic models: a survey," European Economic Review, Elsevier, vol. 51(5), pages 1059-1105, July.

    More about this item

    Keywords

    field of study choice; community college; Canada; selection bias;
    All these keywords.

    JEL classification:

    • 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

    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:iza:izadps:dp1156. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    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.