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The Effect of College Curriculum on Earnings: Accounting for Non-Ignorable Non-Response Bias

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  • Daniel S. Hamermesh
  • Stephen G. Donald

Abstract

We link information on the current earnings of college graduates from many cohorts to their high-school records, their detailed college records and their demographics to infer the impact of college major on earnings. We develop an estimator to handle the potential for non-response bias and identify non-response using an affinity measure -- the potential respondent's link to the organization conducting the survey. This technique is generally applicable for adjusting for unit non-response. In the model describing earnings, estimated using the identified (for non-response bias) selectivity adjustments, adjusted earnings differentials across college majors are less than half as large as unadjusted differentials and ten percent smaller than those that do not account for selective non-response.

Suggested Citation

  • Daniel S. Hamermesh & Stephen G. Donald, 2004. "The Effect of College Curriculum on Earnings: Accounting for Non-Ignorable Non-Response Bias," NBER Working Papers 10809, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:10809
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    References listed on IDEAS

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    Cited by:

    1. Usamah Fayez Al-Farhan, 2010. "Changes in the Gender Wage Gap in Germany during a Period of Rising Wage Inequality 1999-2006: Was it Discrimination in the Returns to Human Capital?," SOEPpapers on Multidisciplinary Panel Data Research 293, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Cornwell, Christopher & Lee, Kyung Hee & Mustard, David B., 2006. "The Effects of State-Sponsored Merit Scholarships on Course Selection and Major Choice in College," IZA Discussion Papers 1953, Institute of Labor Economics (IZA).
    3. Daniel S. Hamermesh, 2006. "The Value of Peripatetic Economists: A Sesqui‐Difference Evaluation of Bob Gregory," The Economic Record, The Economic Society of Australia, vol. 82(257), pages 138-149, June.
    4. Yosef Bonaparte & Frank Fabozzi, 2011. "Savings selectivity bias, subjective expectations and stock market participation," Applied Financial Economics, Taylor & Francis Journals, vol. 21(3), pages 119-130.
    5. Eric Bettinger, 2010. "To Be or Not to Be: Major Choices in Budding Scientists," NBER Chapters, in: American Universities in a Global Market, pages 69-98, National Bureau of Economic Research, Inc.
    6. Johansson, Fredrik, 2007. "How to Adjust for Nonignorable Nonresponse: Calibration, Heckit or FIML?," Working Paper Series 2007:22, Uppsala University, Department of Economics.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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