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Geographic Differences in the Earnings of Economics Majors

  • Winters, John V.

    ()

    (Oklahoma State University)

  • Xu, Weineng

    (University of Arkansas, Fayetteville)

Economics has been shown to be a relatively high earning college major, but geographic differences in earnings have been largely overlooked. This paper uses the American Community Survey to examine geographic differences in both absolute earnings and relative earnings for economic majors. We find that there are substantial geographic differences in both the absolute and relative earnings of economics majors even controlling for individual characteristics such as age and advanced degrees. We argue that mean earnings in specific labor markets are a better measure of the benefits of majoring in economics than simply looking at national averages.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7584.

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Length: 29 pages
Date of creation: Aug 2013
Date of revision:
Publication status: published in: Journal of Economic Education, 2014, 45 (3), 262-276
Handle: RePEc:iza:izadps:dp7584
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  1. Yankow, Jeffrey J., 2006. "Why do cities pay more? An empirical examination of some competing theories of the urban wage premium," Journal of Urban Economics, Elsevier, vol. 60(2), pages 139-161, September.
  2. Winters, John V., 2009. "Wages and prices: Are workers fully compensated for cost of living differences?," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 632-643, September.
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