The role of mathematical and verbal skills on the returns to graduate and professional education

No Thumbnail Available
Date
2008-12-01
Authors
Song, Moohoun
Wohlgemuth, Darin
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Authors
Person
Research Projects
Organizational Units
Organizational Unit
Journal Issue
Is Version Of
Versions
Series
Department
Economics
Abstract

Students in majors with higher average quantitative graduate records exam (GRE) scores are less likely to attend graduate school whereas students in majors with higher average verbal GRE scores are more likely to attend graduate school. This sorting effect means that students whose cognitive skills are associated with lower earnings at the bachelor's level are the most likely to attend graduate school. As a result, there is a substantial downward bias in estimated returns to graduate education. Correcting for the sorting effect raises estimated annualized returns to a Master's or doctoral degree from about 5% to 7.3% and 12.8%, respectively. Estimated returns to professional degrees rise from 13.9% to 16.6%. These findings correspond to a large increase in relative earnings received by postgraduate degree holders in the United States over the past 20 years.

Comments

This is a working paper of an article from Economics of Education Review 27 (2008): 664, doi: 10.1016/j.econedurev.2007.09.008.

Description
Keywords
Citation
DOI
Copyright
Collections