Returns to Education through Access to Higher-Paying Firms: Evidence from US Matched Employer-Employee Data
Niklas Engbom and
American Economic Review, 2017, vol. 107, issue 5, 374-78
We use administrative US matched employer-employee data merged with detailed information on individuals' academic records to assess the extent to which returns to education are mediated by the sorting of workers across firms. We present three results. First, we confirm findings in the earlier literature of large pay differences across higher education degrees. Second, we show that up to one quarter of pay premiums for higher degrees are explained by between-firm pay differences. Third, higher degrees are associated with greater representation at the best-paying firms. We conclude that employer heterogeneity is an important factor in mediating the returns to education.
JEL-codes: I26 J24 J31 (search for similar items in EconPapers)
Note: DOI: 10.1257/aer.p20171013
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... ERYvQBVkK3BCj-0vG97o (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... oGbTeRg-BNT6btuZvkcM (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:107:y:2017:i:5:p:374-78
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Pinelopi Koujianou Goldberg
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Series data maintained by Jane Voros ().