The Postgraduate Wage Premium: Estimating the Age-Wage Profiles Using 2007 Employment Status Survey(in Japanese)

Hisanobu Kakizawa, Tomotaka Hirao, Hisakazu Matsushige, Izumi Yamasaki and Tomohiko Inui

ESRI Discussion paper series from Economic and Social Research Institute (ESRI)

Abstract: Many people have been skeptical about the economic value of going to graduate school in Japan. However, there are few empirical studies to analyze this issue. This paper estimates the private internal rate of return to postgraduate education and assesses the postgraduate wage premium in Japan. In particular, the study illustrates how much the payroll systems of companies and institutions favor postgraduate graduates over college graduates by analyzing the age-wage profiles of workers who continuously work for the same employers after they graduate. The comparison of the age-wage profiles of college degree holders and postgraduate degree holders reveals that the lifetime wage income is higher among those with postgraduate degrees than among those who have college degrees both for males and females. The wages of postgraduate graduates continue to rise as they get older, which widens the wage gap with college graduates. The internal rates of return to master’s degrees are 11.4% for males and 10.1% for females, while the ones to Ph.Ds are 5.9% for males and 5.7% for females. The paper therefore shows the significant postgraduate wage premium over college graduates.

Pages: 36 pages
Date: 2014-06
New Economics Papers: this item is included in nep-edu
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.esri.go.jp/jp/archive/e_dis/e_dis310/e_dis310.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.esri.go.jp:80 (No such host is known. )

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:esj:esridp:310

Access Statistics for this paper

More papers in ESRI Discussion paper series from Economic and Social Research Institute (ESRI) Contact information at EDIRC.
Bibliographic data for series maintained by HORI nobuko ( this e-mail address is bad, please contact ).