IDEAS home Printed from https://ideas.repec.org/a/eee/ecoedu/v91y2022ics0272775722001029.html
   My bibliography  Save this article

Should I get a master’s degree?

Author

Listed:
  • Chesney, Alexander J.

Abstract

This paper examines workplace peer effects on advanced education attainment. Using administrative data from the U.S. Department of Defense (DoD) and conditional exogeneous assignment of employees to workplace, I provide empirical evidence that coworkers’ education investment behavior increases the likelihood of using Employer-Provided Educational Assistance (EPEA) benefits to start and eventually complete a graduate degree. I find a 10 percentage point (p.p.) increase in the proportion of peers using Tuition Assistance (TA) increases the probability of starting a master’s degree by 4.99 p.p. Additionally, a 10 p.p. increase in the proportion of coworkers that have finished an advanced degree increases completion rates by 2.71 p.p. within eight years in the organization.

Suggested Citation

  • Chesney, Alexander J., 2022. "Should I get a master’s degree?," Economics of Education Review, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:ecoedu:v:91:y:2022:i:c:s0272775722001029
    DOI: 10.1016/j.econedurev.2022.102329
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0272775722001029
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econedurev.2022.102329?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory and Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 79-119.
    2. Abramitzky, Ran & Lavy, Victor & Pérez, Santiago, 2021. "The long-term spillover effects of changes in the return to schooling," Journal of Public Economics, Elsevier, vol. 196(C).
    3. Jacob M. Markman & Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2003. "Does peer ability affect student achievement?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 527-544.
    4. Briana Ballis, 2021. "Does Peer Motivation Impact Educational Investments? Evidence From DACA," Working Papers 2021-027, Human Capital and Economic Opportunity Working Group.
    5. Alexandre Mas & Enrico Moretti, 2009. "Peers at Work," American Economic Review, American Economic Association, vol. 99(1), pages 112-145, March.
    6. Modena, Francesca & Rettore, Enrico & Tanzi, Giulia, 2021. "Does Gender Matter? The Effect of High Performing Peers on Academic Performances," IZA Discussion Papers 14806, Institute of Labor Economics (IZA).
    7. Welteke, Clara & Wrohlich, Katharina, 2019. "Peer effects in parental leave decisions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 57, pages 146-163.
    8. Lépine, Andrea & Estevan, Fernanda, 2021. "Do ability peer effects matter for academic and labor market outcomes?," Labour Economics, Elsevier, vol. 71(C).
    9. Gordon B. Dahl & Katrine V. L?ken & Magne Mogstad, 2014. "Peer Effects in Program Participation," American Economic Review, American Economic Association, vol. 104(7), pages 2049-2074, July.
    10. Adam Altmejd & Andrés Barrios-Fernández & Marin Drlje & Joshua Goodman & Michael Hurwitz & Dejan Kovac & Christine Mulhern & Christopher Neilson & Jonathan Smith, 2021. "O Brother, Where Start Thou? Sibling Spillovers on College and Major Choice in Four Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(3), pages 1831-1886.
    11. Gregor Jarosch & Ezra Oberfield & Esteban Rossi‐Hansberg, 2021. "Learning From Coworkers," Econometrica, Econometric Society, vol. 89(2), pages 647-676, March.
    12. Jeffrey T. Denning & Eric R. Eide & Kevin J. Mumford & Richard W. Patterson & Merrill Warnick, 2022. "Why Have College Completion Rates Increased?," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 1-29, July.
    13. James S. Coleman, 1968. "Equality of Educational Opportunity: Reply to Bowles and Levin," Journal of Human Resources, University of Wisconsin Press, vol. 3(2), pages 237-246.
    14. Scott E. Carrell & Mark Hoekstra & Elira Kuka, 2018. "The Long-Run Effects of Disruptive Peers," American Economic Review, American Economic Association, vol. 108(11), pages 3377-3415, November.
    15. Valerie K. Bostwick & Bruce A. Weinberg, 2022. "Nevertheless She Persisted? Gender Peer Effects in Doctoral STEM Programs," Journal of Labor Economics, University of Chicago Press, vol. 40(2), pages 397-436.
    16. Lasse Brune & Eric Chyn & Jason Kerwin, 2022. "Peers and Motivation at Work: Evidence from a Firm Experiment in Malawi," Journal of Human Resources, University of Wisconsin Press, vol. 57(4), pages 1147-1177.
    17. David Autor & Claudia Goldin & Lawrence F. Katz, 2020. "Extending the Race between Education and Technology," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 347-351, May.
    18. Scott E. Carrell & Mark L. Hoekstra, 2010. "Externalities in the Classroom: How Children Exposed to Domestic Violence Affect Everyone's Kids," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 211-228, January.
    19. Andrew Barr & Laura Kawano & Bruce Sacerdote & William Skimmyhorn & Michael Stevens, 2021. "You Can’t Handle The Truth: The Effects Of The Post-9/11 Gi Bill On Higher Education And Earnings," NBER Working Papers 29024, National Bureau of Economic Research, Inc.
    20. Bruce Sacerdote, 2014. "Experimental and Quasi-Experimental Analysis of Peer Effects: Two Steps Forward?," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 253-272, August.
    21. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2010. "Social Incentives in the Workplace," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(2), pages 417-458.
    22. Scott E. Carrell & Richard L. Fullerton & James E. West, 2009. "Does Your Cohort Matter? Measuring Peer Effects in College Achievement," Journal of Labor Economics, University of Chicago Press, vol. 27(3), pages 439-464, July.
    23. Andrés Barrios-Fernández, 2022. "Neighbors' Effects on University Enrollment," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 30-60, July.
    24. Cappelli, Peter, 2004. "Why do employers pay for college?," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 213-241.
    25. Joensen, Juanna Schrøter & Nielsen, Helena Skyt, 2018. "Spillovers in education choice," Journal of Public Economics, Elsevier, vol. 157(C), pages 158-183.
    26. Francis X. Murphy, 2019. "Does Increased Exposure to Peers with Adverse Characteristics Reduce Workplace Performance? Evidence from a Natural Experiment in the US Army," Journal of Labor Economics, University of Chicago Press, vol. 37(2), pages 435-466.
    27. Gregory Gilpin & Michael Kofoed, 2020. "Employer-Sponsored Education Assistance and Graduate Program Choice, Cost, and Finance," Research in Higher Education, Springer;Association for Institutional Research, vol. 61(4), pages 431-458, June.
    28. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    29. Bruce Sacerdote, 2001. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 681-704.
    30. Leonardo Bursztyn & Robert Jensen, 2015. "How Does Peer Pressure Affect Educational Investments?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(3), pages 1329-1367.
    31. Adriana Lleras-Muney, 2010. "The Needs of the Army: Using Compulsory Relocation in the Military to Estimate the Effect of Air Pollutants on Children’s Health," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    32. Lieber, Ethan M.J. & Skimmyhorn, William, 2018. "Peer effects in financial decision-making," Journal of Public Economics, Elsevier, vol. 163(C), pages 37-59.
    33. Raj Chetty & Nathaniel Hendren & Lawrence F. Katz, 2016. "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment," American Economic Review, American Economic Association, vol. 106(4), pages 855-902, April.
    34. Colleen Flaherty Manchester, 2008. "The Effect of Tuition Reimbursement on Turnover: A Case Study Analysis," NBER Chapters, in: The Analysis of Firms and Employees: Quantitative and Qualitative Approaches, pages 197-228, National Bureau of Economic Research, Inc.
    35. Sangyoon Park, 2019. "Socializing at Work: Evidence from a Field Experiment with Manufacturing Workers," American Economic Journal: Applied Economics, American Economic Association, vol. 11(3), pages 424-455, July.
    36. Rosen, Sherwin, 1987. "The theory of equalizing differences," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 12, pages 641-692, Elsevier.
    37. Foster, Gigi, 2006. "It's not your peers, and it's not your friends: Some progress toward understanding the educational peer effect mechanism," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1455-1475, September.
    Full references (including those not matched with items on IDEAS)

    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. Andrés Barrios-Fernández, 2022. "Neighbors' Effects on University Enrollment," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 30-60, July.
    2. Berlinski, Samuel & Busso, Matias & Giannola, Michele, 2023. "Helping struggling students and benefiting all: Peer effects in primary education," Journal of Public Economics, Elsevier, vol. 224(C).
    3. Maria De Paola & Roberto Nisticò & Vincenzo Scoppa, 2024. "Workplace Peer Effects in Fertility Decisions," CSEF Working Papers 714, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    4. Alexandra de Gendre & Nicolás Salamanca, 2020. "On the Mechanisms of Ability Peer Effects," Melbourne Institute Working Paper Series wp2020n19, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. Deng, Weiguang & Jiang, Shengjun & Li, Xue & Ye, Maoliang, 2024. "Peer effects in donations: Evidence from random assignment of college roommates," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 631-644.
    6. Dewan, Prerna & Ray, Tridip & Roy Chaudhuri, Arka & Tater, Kirti, 2024. "Gender peer effects in high schools: Evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 470-494.
    7. Jones, Todd R. & Kofoed, Michael S., 2020. "Do peers influence occupational preferences? Evidence from randomly-assigned peer groups at West Point," Journal of Public Economics, Elsevier, vol. 184(C).
    8. John List & Haruka Uchida, 2024. "Here Today, Gone Tomorrow? Toward an Understanding of Fade-out in Early Childhood Education Programs," Framed Field Experiments 00797, The Field Experiments Website.
    9. Yi Cao & Tao Zhou & Jian Gao, 2024. "Heterogeneous peer effects of college roommates on academic performance," Nature Communications, Nature, vol. 15(1), pages 1-11, December.
    10. Berlinski, Samuel & Ramos, Alejandra, 2020. "Peer effects in the decision to apply for a professional excellence award," Labour Economics, Elsevier, vol. 67(C).
    11. Jeffrey T. Denning & Richard Murphy & Felix Weinhardt, 2023. "Class Rank and Long-Run Outcomes," The Review of Economics and Statistics, MIT Press, vol. 105(6), pages 1426-1441, November.
    12. Richard Murphy & Felix Weinhardt, 2020. "Top of the Class: The Importance of Ordinal Rank," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(6), pages 2777-2826.
    13. Gordon B. Dahl & Katrine V. L?ken & Magne Mogstad, 2014. "Peer Effects in Program Participation," American Economic Review, American Economic Association, vol. 104(7), pages 2049-2074, July.
    14. Stephen Gibbons & Shqiponja Telhaj, 2016. "Peer Effects: Evidence from Secondary School Transition in England," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(4), pages 548-575, August.
    15. Matthew A. Lenard & Mikko Silliman, 2024. "Informal Social Interactions, Academic Achievement and Behaviour: Evidence from Peers on the School Bus," CESifo Working Paper Series 11115, CESifo.
    16. Leonardo Bursztyn & Florian Ederer & Bruno Ferman & Noam Yuchtman, 2012. "Understanding Peer Effects in Financial Decisions: Evidence from a Field Experiment," NBER Working Papers 18241, National Bureau of Economic Research, Inc.
    17. Dinarte Diaz,Lelys Ileana, 2020. "Peer Effects on Violence : Experimental Evidence from El Salvador," Policy Research Working Paper Series 9187, The World Bank.
    18. Hikaru Kawarazaki & Minhaj Mahmud & Yasuyuki Sawada & Mai Seki, 2023. "Haste Makes No Waste: Positive Peer Effects of Classroom Speed Competition on Learning," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 85(4), pages 755-772, August.
    19. Ozkan Eren, 2017. "Differential Peer Effects, Student Achievement, and Student Absenteeism: Evidence From a Large-Scale Randomized Experiment," Demography, Springer;Population Association of America (PAA), vol. 54(2), pages 745-773, April.
    20. Alexandra E. Hill & Jesse Burkhardt, 2021. "Peers in the Field: The Role of Ability and Gender in Peer Effects among Agricultural Workers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 790-811, May.

    More about this item

    Keywords

    Peer effects; Student financial aid; Master’s degrees;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

    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:eee:ecoedu:v:91:y:2022:i:c:s0272775722001029. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/econedurev .

    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.