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Returns to Education Through Access to Higher-Paying Firms: Evidence from US Matched Employer-Employee Data

Niklas Engbom and Christian Moser ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper sheds light on the microfoundations of reduced-form returns to education. Specifically, we ask: are more advanced higher education degrees associated with increased earnings within employers or higher average pay across employers? And to the extent that sorting across firms matters, what parts of the employer pay distribution are higher degrees differentially represented in?

Keywords: Returns to education; wage inequality; firm heterogeneity; worker heterogeneity; schooling; college; human capital; signaling (search for similar items in EconPapers)
JEL-codes: I2 I20 I23 I24 I26 I29 J0 J00 J01 J3 J30 J31 (search for similar items in EconPapers)
Date: 2017
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Published in American Economic Review 5.107(2017): pp. 374-378

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