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ERIC Number: EJ819490
Record Type: Journal
Publication Date: 2008-Dec
Pages: 12
Abstractor: As Provided
Reference Count: N/A
ISBN: N/A
ISSN: ISSN-0272-7757
The Role of Mathematical and Verbal Skills on the Returns to Graduate and Professional Education
Song, Moohoun; Orazem, Peter F.; Wohlgemuth, Darin
Economics of Education Review, v27 n6 p664-675 Dec 2008
Students in majors with higher average quantitative graduate records exam (GRE) scores are less likely to attend graduate school whereas students in majors with higher average verbal GRE scores are more likely to attend graduate school. This sorting effect means that students whose cognitive skills are associated with lower earnings at the bachelor's level are the most likely to attend graduate school. As a result, there is a substantial downward bias in estimated returns to graduate education. Correcting for the sorting effect raises estimated annualized returns to a Master's or doctoral degree from about 5% to 7.3% and 12.8%, respectively. Estimated returns to professional degrees rise from 13.9% to 16.6%. These findings correspond to a large increase in relative earnings received by postgraduate degree holders in the United States over the past 20 years. (Contains 4 figures and 4 tables.)
Elsevier. 6277 Sea Harbor Drive, Orlando, FL 32887-4800. Tel: 877-839-7126; Tel: 407-345-4020; Fax: 407-363-1354; e-mail: usjcs@elsevier.com; Web site: http://www.elsevier.com
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Assessments and Surveys: Graduate Record Examinations