Internal and External Wage Effects Associated with a Changing Share of College Graduates
The Ordinary Least Squares (OLS) estimates, controlling for potential work experience, total years of schooling, individual occupation, employment industry, immigration status, visible minority status, show a significant positive relationship between the percentage change of the share of college-educated workers and the percentage change of individuals real weekly wage rates. We found that one percentage point increase in a census metropolitan areas share of college-graduated workers was associated with a 0.35 percentage change in all workers wage rates in that city. For separated education groups, our results showed that a one percentage expansion in the supply of college-graduated workers raised less than high schools wage rate by 0.245 percent, raised high-school graduates wage rate by 0.363 percent, raised more than college-educated workers wage rate by 0.385 percent, and raised college-educated wage rate by 0.326 percentage. These results are consistent with the conclusion arrived at by E. Moretti, (2004) that all types of workers earnings increased when a citys share of college graduates rose.
Advisor:Howe, Eric; Venne, Rosemary; Echevarria, Cristina; Huq, Mobinul
School:University of Saskatchewan
School Location:Canada - Saskatchewan
Source Type:Master's Thesis
Keywords:share of college graduates high level education effect internal and external wage effects labour economics
Date of Publication:03/04/2008