Abstract
This research uses data from the 1992 follow-up to the High School and Beyond longitudinal study of 1980 high school sophomores to identify the percentage of the observed earnings premium that is attributable to a bachelor's degree, the extent to which this percentage varies based on the characteristics that are taken into account in the analyses (e.g., ability, job tenure and experience, industry, and occupation), and the extent to which this percentage varies based on sex, race, and socioeconomic status. The analyses provide an update to previous work on this topic.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
REFERENCES
Ashenfelter, O., and Krueger, A. (1999). Estimates of the economic return to schooling from a new sample of twins. In: Ashenfelter, O. (ed.), Labor Economics, Worth Publishers, New York, pp. 90–111.
Becker, G. S. (1962). Investment in human capital: A theoretical analysis. J. Polit. Econ. 70 (Suppl. 5): 9–49.
Becker, G. S. (1993). Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Ed.), University of Chicago Press, Chicago.
Berkner, L., and Chavez, L. (1997). Access to Postsecondary Education for the 1992 High School Graduates, National Center for Education Statistics (NCES 98-105), Washington, DC.
Bowen, H. R. (1997). Investment in Learning: The Individual and Social Value of American Higher Education, Johns Hopkins University Press, Baltimore.
Cooper, S. T., and Cohn, E. (1997). Internal rates of return to college education in the United States by sex and race. J. Educ. Finance 23: 101–133.
Fuller, W. C., Manski, C. F., and Wise, D. A. (1982). New evidence on the economic determinants of postsecondary schooling choices. J. Hum. Resour. 17: 477–498.
Hansen, W. L., and Weisbrod, B. A. (1969). Benefits, Costs, and Finance of Public Higher Education, Markham Publishing Company, Chicago.
Ikenberry, S., and Hartle, T. (1998). Too Little Knowledge Is a Dangerous Thing: What the Public Thinks and Knows About Paying for College, American Council on Education, Washington, DC.
Kane, T. J. (1999). The Price of Admission: Rethinking How Americans Pay for College, Brookings Institution Press, Washington, DC.
Leslie, L. L., and Brinkman, P. T. (1988). The Economic Value of Higher Education, American Council on Education and The Oryx Press, Phoenix.
Manski, C. F., and Wise, D. A. (1983). College Choice in America, Harvard University Press, Cambridge.
McPherson, M. A. (1993). How can we tell if financial aid is working? In: McPherson, M. S., Schapiro, M. O., and Winston, G. C. (eds.), Paying the Piper: Productivity, Incentives, and Financing in U.S. Higher Education, University of Michigan Press, Ann Arbor, pp. 135–164.
Mincer, J. (1974). Schooling, Experience, and Earnings, Ashgate Publishing Company, Brookfield, VT.
Monks, J. (2000). The returns to individual and college characteristics. Econ. Educ. Rev. 19: 279–289.
Mortenson, T. (November 2000). Private economic benefit/cost ratios of a college investment for men and women: 1967 to 1999. Postsecondary Education OPPORTUNITY, Oskaloosa, IA.
National Center for Education Statistics (2001). Digest of Education Statistics 2000, Author, Washington, DC.
National Center for Education Statistics (2002). Condition of Education 2001, Author, Washington, DC.
Olson, L., and Rosenfeld, R. A. (1984). Parents and the process of gaining access to student financial aid. J. Higher Educ. 55: 455–480.
Paulsen, M. B. (2001). The economics of human capital and investment in higher education. In: Paulsen, M. B., and Smart, J. C. (eds.), The Finance of Higher Education: Theory, Research, Policy, and Practice, Agathon Press, New York, pp. 55–94.
Perna, L. W. (2000). Differences in the decision to enroll in college among African Americans, Hispanics, and Whites. J. Higher Educ. 71: 117–141.
Rumberger, R. W., and Thomas, S. L. (1993). The economic returns to college major, quality and performance: A multilevel analysis of recent graduates. Econ. Educ. Rev. 12: 1–19.
Schultz, T. W. (1961). Investment in human capital. Am. Econ. Rev. 51: 1–17.
Schwartz, J. B. (1985). Student financial aid and the college enrollment decision: The effects of public and private grants and interest subsidies. Econ. Educ. Rev. 4: 129–144.
Smith, K. E., and Bachu, A. (1999). Women's labor force attachment patterns and maternity leave: A review of the literature (Population Division Working Paper No. 32). U.S. Census Bureau, Washington, DC.
Thomas, S. L., and Heck, R. H. (2001). Analysis of large-scale secondary data in higher education research: Potential perils associated with complex sampling designs. Res. Higher Educ. 42: 517–540.
U.S. Census Bureau (2001). Statistical Abstract of the United States: 2001, Author, Washington, DC.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Perna, L.W. The Private Benefits of Higher Education: An Examination of the Earnings Premium. Research in Higher Education 44, 451–472 (2003). https://doi.org/10.1023/A:1024237016779
Issue Date:
DOI: https://doi.org/10.1023/A:1024237016779