Some Determinants of the Variation in Earnings for College Men

Ritchie H. Reed and Herman P. Miller

Journal of Human Resources, 1970, vol. 5, issue 2, 177-19

Abstract: The influences of several factors on the earnings of men with college degrees were measured using multiple regression with dummy variables. Earnings were found to be positively related to the rank of the colleges where degrees were received. For the holders of bachelor's degrees, engineering, the physical sciences, and business and commerce offer the greatest monetary rewards. For those with higher degrees, health fields and law offer the greatest returns. After accounting for college quality, age, field of specialization, and level of degree, nonwhites were found to have significantly lower average earnings than whites. The difference at each degree level is over $2,400 per year. Other factors tend to reinforce the lower earnings attributable to being nonwhite. Several background factors were introduced into the analysis, but they did not appear to be very important in determining the earnings of college men.

Date: 1970
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