Geographic Differences in the Earnings of Economics Majors

Abstract

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Do earnings by college major affect graduate migration?

“…Researchers have shown that investments in different skills by college major can have substantial impacts on the future earnings of college graduates (Arcidiacono 2004). For example, engineering and economics majors typically earn much higher incomes than those in education and performing arts (Winters and Xu 2014). However, earnings differences across majors are not independent of location; some areas offer relatively high earnings for a given major while other areas offer much lower earnings for the same major (Cunningham, Patton, and Reed 2013).…”

“…However, earnings differences across majors are not independent of location; some areas offer relatively high earnings for a given major while other areas offer much lower earnings for the same major (Cunningham, Patton, and Reed 2013). Furthermore, the earnings gaps across majors differ across areas (Winters and Xu 2014). Local labor markets differ in their relative demands for various types of labor and market forces will cause higher relative earnings for those majors that are in greater demand.…”

“…Recent research also shows that college graduate income differences across areas differ somewhat by college major (Cunningham, Patton, and Reed 2013;Winters and Xu 2014;Abel and Deitz 2015). Consequently, one might also expect differential location decisions by college major.…”

Self-employment differentials among foreign-born STEM and non-STEM workers

“…As such, college major has a substantial effect on earnings, though the literature typically does not differentiate between effects for natives and foreigners (Arcidiacono 2004;Winters and Xu 2014;Eide et al 2015). STEM majors are often given special attention and typically shown to provide the highest average earnings.…”

Is economics a good major for future lawyers? Evidence from earnings data

“…Of course, the expected benefits and costs vary across individuals due to different skills, endowments, and preferences. By far one of the most important benefits offered by various majors is the expected future earnings, and economics has consistently been shown to be a financially rewarding major (Black et al 2003;Allgood et al 2011;Carroll et al 2014;Winters and Xu 2014). However, expected earnings also depend on the career path an individual plans to pursue after college.…”