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Relevance of education to occupation: a new empirical approach based on college courses

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  • Pooya Almasi
  • Aboozar Hadavand
  • Sarah Thomas
  • Orkideh Gharehgozli

Abstract

We introduce a new approach to measuring the match between education and occupation by using the number of college courses related to one's occupation. Previous studies have only considered the match between college ‘major’ and occupation. That approach ignores the content of education and the courses taken in college. We find that taking courses in college that are relevant to one's occupation is significantly associated with higher wages, which can be taken as evidence against the notion that returns to college are principally a matter of signaling. A student's wage increases, on average, by 1.5–2.1% for each matched course.

Suggested Citation

  • Pooya Almasi & Aboozar Hadavand & Sarah Thomas & Orkideh Gharehgozli, 2020. "Relevance of education to occupation: a new empirical approach based on college courses," Education Economics, Taylor & Francis Journals, vol. 28(4), pages 370-383, July.
    • Handle: RePEc:taf:edecon:v:28:y:2020:i:4:p:370-383
    DOI: 10.1080/09645292.2020.1749233
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    Cited by:

    1. Deborah M. Weiss & Matthew L. Spitzer & Colton Cronin & Neil Chin, 2024. "Why college majors and selectivity matter: Major groupings, occupation specificity, and job skills," Contemporary Economic Policy, Western Economic Association International, vol. 42(2), pages 278-304, April.
    2. Jiang, Shengjun & Guo, Yilan, 2022. "Reasons for college major-job mismatch and labor market outcomes: Evidence from China," China Economic Review, Elsevier, vol. 74(C).

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