Scandinavian Working Papers in Economics

Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

No 08-10: Early Labour Market Returns to College Subjects

Paolo Buonanno () and Dario Pozzoli ()
Additional contact information
Paolo Buonanno: Dipartimento di Scienze Economiche, Postal: Università degli Studi di Bergamo, Via dei Caniana 2, 24127 Bergamo, Italy
Dario Pozzoli: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark

Abstract: This paper aims at estimating early labour market outcomes of Italian university graduates across college subjects. We devote great attention to endogenous selection issues using alternative methods to control for potential self-selection associated with the choice of the degree subject in order to unravel the causal link between college major and subsequent outcomes in the labour market. Our results suggest that “quantitative” fields (i.e. Sciences, Engineering and Economics) increase not only the speed of transition into the first job and employment probability but also early earnings, conditional on employment.

Keywords: University to work transition; College subject; Self-selection; Returns to education

JEL-codes: C34; I21; J24

44 pages, May 1, 2008

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