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The changing composition of academic majors and wage dynamics: Beyond mean returns

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  • Kyui, Natalia
  • Radchenko, Natalia

Abstract

This paper studies the effects of the changing composition of academic majors during expansion of higher education on the dynamics of wage distribution. Using a unique dataset constructed from open-ended responses in the Russia Longitudinal Monitoring Survey, we conduct a structural analysis of wage distribution dynamics for higher education graduates over 2002–2016. In addition to the standard mean wage estimations across majors we explore within-major and across-cohort variation, as well as major-specific permanent and transitory variance components and their time paths.

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  • Kyui, Natalia & Radchenko, Natalia, 2021. "The changing composition of academic majors and wage dynamics: Beyond mean returns," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 358-381.
    • Handle: RePEc:eee:jcecon:v:49:y:2021:i:2:p:358-381
    DOI: 10.1016/j.jce.2020.07.009
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    1. Zhu,Yu & Xu, Lei, 2022. "Returns to Higher Education - Graduate and Discipline Premiums," GLO Discussion Paper Series 1091, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Returns to academic majors; Wage dynamics and inequality; Structural analysis of wage variance;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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