Do Human Arts Really Offer a Lower Return to Education?

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Is the wage gap between majors in human arts and other fields caused by the education?  If the educational choice is endogenous, the wage gap may instead be caused by selection. We  document that individuals' educational choice is correlated with that of older students and by  the concentration of women in their high school. Conditional on high school fixed effects, these  characteristics are unlikely to affect post-university wages and are plausible instruments for the  educational choice. Our 2SLS estimates reveal that the gap in returns to education is negligible, implying that the wage gap is attributable to selection.
Original languageEnglish
Place of PublicationCopenhagen
PublisherCentre for Economic and Business Research
Number of pages41
Publication statusPublished - 2009

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