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A note on occupational variations in the returns to education in the US labor market

Author

Listed:
  • Paul E. Gabriel
  • Susanne Schmitz

Abstract

Purpose - Seeks to answer the question: “do certain occupations offer lower financial benefits to acquiring years of formal schooling than others?”. Design/methodology/approach - This study uses data from the 2003 Current Population Survey to estimate rates of return to education across occupational categories in the US labor market. The wage model employed is based on the human capital model of income determination. Findings - The analysis suggests that additional schooling has a positive impact on the weekly earnings of men and women in both white‐ and blue‐collar occupations – with the highest returns accruing to sales, managerial, and professional workers. Although returns are generally higher for white‐collar workers, no link is found between the returns to schooling and the propensity of occupations to be comprised of “primary” or “secondary” sector jobs. Originality/value - Supports the notion that additional schooling increases the earnings of men and women in both blue‐ and white‐collar occupations.

Suggested Citation

  • Paul E. Gabriel & Susanne Schmitz, 2005. "A note on occupational variations in the returns to education in the US labor market," International Journal of Manpower, Emerald Group Publishing Limited, vol. 26(5), pages 450-456, July.
    • Handle: RePEc:eme:ijmpps:01437720510615134
    DOI: 10.1108/01437720510615134
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    Cited by:

    1. W.A. Senathissa, 2023. "The effect of schooling, experiences, and firm size on earnings in Sri Lanka (Incorporated with the major emphasis of Mincer’s Earnings Function)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(6), pages 561-575, June.

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