Labor Market Returns to Elite STEM Education

Tiina Kuuppelomäki, Mika Kortelainen, Tuomo Suhonen and Hanna Virtanen

Journal of Human Capital, 2026, vol. 20, issue 1, 150 - 189

Abstract: We explore the returns to elite STEM education by examining the educational and labor market consequences of admission to Finland’s most prestigious engineering school. Using data from centralized admissions, we estimate these effects by regression discontinuity design for marginally admitted elite school applicants who also applied to another engineering school. According to our results, elite school admission leads to an advantaged peer group and triples the probability of graduating from the elite school but does not improve the average early-career labor market outcomes. However, we find positive returns for students who originate from low-educated families. These returns are likely driven by strong effects on this group’s exposure to the elite school’s programs and surrounding labor market region.

Date: 2026
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