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A student's dilemma: is there a trade-off between a higher salary or higher GPA

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  • Timothy M. Diette
  • Manu Raghav

Abstract

In this paper, we explore whether there is a relationship between average grades earned in a course and the national average salaries of graduates of the major associated with the course. Using student-level data from a selective private liberal arts college, we find an inverse relationship. The result suggests that students face a trade-off between grades earned in college versus higher expected earnings in the future. This relationship is stronger for students with lower math SAT scores but not for those with lower verbal SAT scores. Finally, the female advantage in course grades diminishes significantly in majors with higher salaries.

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  • Timothy M. Diette & Manu Raghav, 2016. "A student's dilemma: is there a trade-off between a higher salary or higher GPA," Education Economics, Taylor & Francis Journals, vol. 24(6), pages 612-621, November.
    • Handle: RePEc:taf:edecon:v:24:y:2016:i:6:p:612-621
    DOI: 10.1080/09645292.2016.1139690
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    Cited by:

    1. Timothy M. Diette & Manu Raghav, 2017. "Does early bird catch the worm or a lower GPA? Evidence from a liberal arts college," Applied Economics, Taylor & Francis Journals, vol. 49(33), pages 3341-3350, July.
    2. Timothy M. Diette & Manu Raghav, 2016. "Longer Classes Versus More Frequent Classes: Which Wins? Evidence from a Liberal Arts College," Working Papers 2016-03, DePauw University, School of Business and Leadership and Department of Economics and Management.
    3. Timothy M. Diette & Manu Raghav, 2018. "Do GPAs Differ Between Longer Classes and More Frequent Classes at Liberal Arts Colleges?," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(4), pages 519-527, June.

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