Characterizing the Returns to STEM: Marginal and Policy-Relevant Treatment Effects

Aderonke Osikominu, Gregor Pfeifer and Tim Ruberg

No 26160, RFBerlin Discussion Paper Series from ROCKWOOL Foundation Berlin (RFBerlin)

Abstract: We estimate heterogeneous returns to STEM education by leveraging relative distances to technical versus general universities in Switzerland. While individuals who choose a STEM education gain on average, a declining marginal treatment effect curve indicates positive selection on gains, suggesting that low-resistance individuals benefit the most. Through policy simulations aimed at increasing STEM enrollment and estimating corresponding policy-relevant treatment effects, we demonstrate that these policies' effectiveness critically depends on both observable and unobservable characteristics of affected individuals. Furthermore, we highlight how policies should be designed to both increase STEM enrollment and generate positive returns for targeted groups, particularly women.

Keywords: Returns to Education; STEM; MTE; PRTE; Gender (search for similar items in EconPapers)
JEL-codes: C26 I26 I28 J16 J24 (search for similar items in EconPapers)
Date: 2026-06
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Persistent link: https://EconPapers.repec.org/RePEc:crm:wpaper:26160

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