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Field of Study and Earnings Inequality among the Highly Educated: 1993-2010

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  • Ritter, Joseph A.
  • West, Kristine L.

Abstract

Field of study specializes individuals’ human capital in ways that might be either substitutable or complementary to technological change. We study changes in the earnings distribution of the college-educated population between 1993 and 2010 using the National Survey of College Graduates. After documenting changes that increase earnings inequality, we decompose them into composition and wage-structure effects. We find that composition effects account for virtually none of the growth of inequality and, in fact, are surprisingly small, even after we incorporate field of study into the decomposition. We conclude with speculation about why large inter-field changes in earnings did not lead to comparable changes in the flow of entrants.

Suggested Citation

  • Ritter, Joseph A. & West, Kristine L., 2014. "Field of Study and Earnings Inequality among the Highly Educated: 1993-2010," Miscellaneous Publications 195683, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaemp:195683
    DOI: 10.22004/ag.econ.195683
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    References listed on IDEAS

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    1. Joseph G. Altonji & Lisa B. Kahn & Jamin D. Speer, 2014. "Trends in Earnings Differentials across College Majors and the Changing Task Composition of Jobs," American Economic Review, American Economic Association, vol. 104(5), pages 387-393, May.
    2. Thomas Lemieux, 2008. "The changing nature of wage inequality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(1), pages 21-48, January.
    3. Victor Chernozhukov & Iv·n Fern·ndez-Val & Alfred Galichon, 2010. "Quantile and Probability Curves Without Crossing," Econometrica, Econometric Society, vol. 78(3), pages 1093-1125, May.
    4. repec:hal:wpspec:info:hdl:2441/5rkqqmvrn4tl22s9mc4b6ga2g is not listed on IDEAS
    5. Ralph Stinebrickner & Todd R. Stinebrickner, 2014. "A Major in Science? Initial Beliefs and Final Outcomes for College Major and Dropout," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 426-472.
    6. Christopher R. Bollinger & Barry T. Hirsch, 2013. "Is Earnings Nonresponse Ignorable?," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 407-416, May.
    7. Joseph G. Altonji & Lisa B. Kahn & Jamin D. Speer, 2016. "Cashier or Consultant? Entry Labor Market Conditions, Field of Study, and Career Success," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 361-401.
    8. repec:hal:spmain:info:hdl:2441/5rkqqmvrn4tl22s9mc4b6ga2g is not listed on IDEAS
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    Cited by:

    1. Tang, Rongsheng & Wang, Gaowang, 2021. "Educational mismatch and earnings inequality," MPRA Paper 106953, University Library of Munich, Germany.
    2. Tang, Rongsheng & Wang, Gaowang, 2021. "Educational mismatch and income inequality," Economic Modelling, Elsevier, vol. 100(C).
    3. Rongsheng Tang & Yang Tang & Ping Wang, 2020. "Within-Job Wage Inequality: Performance Pay and Job Relatedness," NBER Working Papers 27390, National Bureau of Economic Research, Inc.

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    Keywords

    Consumer/Household Economics; Labor and Human Capital;

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