The Rising Postgraduate Wage Premium

Joanne Lindley and Stephen Machin

Economica, 2016, vol. 83, issue 330, 281-306

Abstract: Despite post‐college degree holders now making up nearly 15% of the US adult workforce, studies of their labour market performance remain sparse. This is surprising given that they are the most educated group in the labour force and as, over time, they have done significantly better than all other education groups. We show a significant rise over time in the postgraduate wage premium, reflecting an increased relative demand due to their superior skill sets and occupational status. The increase in the demand for postgraduates is a key factor behind rising wage inequality within the increasingly heterogeneous college graduate workforce.

Date: 2016
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