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The Rising Postgraduate Wage Premium

Research output: Contribution to journalArticle

Joanne Lindley, Stephen Machin

Original languageEnglish
Article number1
Pages (from-to)281-306
Number of pages25
JournalECONOMICA
Volume83
Issue number330
Early online date8 Mar 2016
DOIs
Publication statusPublished - Apr 2016

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Abstract

Despite post-college degree holders now making up nearly 15% of the US adult workforce, studies of their labour market performance remain sparse. This is surprising given that they are the most educated group in the labour force and as, over time, they have done significantly better than all other education groups. We show a significant rise over time in the postgraduate wage premium, reflecting an increased relative demand due to their superior skill sets and occupational status. The increase in the demand for postgraduates is a key factor behind rising wage inequality within the increasingly heterogeneous college graduate workforce.

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