Mobility, education and labor market outcomes for U.S. graduates: Is selectivity important?

The literature on human capital, and its positive effects on individuals and regional economies, is now vast. The linkages between human capital and migration have also found a fertile ground in recent years especially in Europe where many studies have focused on interregional migration of graduates and highly skilled individuals. However, the literature on this phenomenon in the USA is less developed. Using the SESTAT database from NSF, this paper aims at contributing to the understanding of inter-state migration behavior of graduates in the USA and its effects on their career outcomes. It builds on the existing literature not only by focusing specifically on the US context, but also incorporating into the empirical model a correction for the possible selection bias that arises from the dual relationship between migration propensity and human capital endowment. Our estimated Mincerian earning equations, corrected for migrant self-selectivity, show that indeed repeat migration is associated with higher average salaries, while late migration is associated with a salary penalty. As for the other control variables, our results are consistent with what has been found in the labor economics literature. Female workers suffer from a salary penalty, while experience, level of education and employer size are all associated with higher average salaries. The labor market also rewards different fields of study differently

Science and Engineering Labor Force

[Excerpt] Like most developed economies, the United States increasingly depends on a technically skilled workforce, including scientists and engineers. Workers for whom knowledge and skill in S&E are central to their jobs have an effect on the economy and the wider society that is disproportionate to their numbers: they contribute to research and development, increased knowledge, technological innovation, and economic growth. Moreover, the knowledge and skills associated with science and engineering have diffused across occupations and become more important in jobs that are not traditionally associated with S&E

Does Economic Uncertainty Have an Impact on Decisions to Bear Children? Evidence from Eastern Germany

Economic agents routinely face various types of economic uncertainty. Seldom have these various forms of uncertainty manifested themselves more sharply than in the transition economies of Central and Eastern Europe. In East Germany, the transition was especially rapid and sharp since East Germany virtually over night made the transition from the Eastern European system to the market economy of Western Germany. Uncertainties increased and many institutional and behavioral adjustments took place in a concentrated period of time. Among the latter was a sharp fall in fertility rates, leading to a growing literature on the explanation for this decline. This paper focuses directly on the link between uncertainty and childbearing decisions and examines the link at the micro level. It develops a stylized overlapping generations model showing that the relationship between economic uncertainty and childbearing decisions is not necessarily monotonic, and hence that the aforementioned inverse relationship is merely a testable hypothesis. It then uses GSOEP data for 1992 and 1996 to estimate the nature of this relationship, and concludes that while this relationship was indeed negative for East German women during these two years, the nature of uncertainty affecting their childbearing decisions differed across the years.http://deepblue.lib.umich.edu/bitstream/2027.42/39876/3/wp491.pd

The Role of Mathematical and Verbal Skills on the Returns to Graduate and Professional Education

Students in majors with higher average quantitative GRE scores are less likely to attend graduate school while students in majors with higher average verbal GRE scores are more likely to attend graduate school. This sorting effect means that students whose cognitive skills are associated with lower earnings at the bachelorï¾’s level are the most likely to attend graduate school. As a result, there is a substantial downward bias in estimated returns to graduate education. Correcting for the sorting effect raises estimated annualized returns to a Masterï¾’s or doctoral degree from about 5% to 7.3% and 12.8% respectively. Estimated returns to professional degrees rise from 13.9% to 16.6%. These findings correspond to a large increase in relative earnings received by postgraduate degree holders in the United States over the past 20 years.sorting; Postgraduate; Rate of return; Demand for schooling; Quantitative skills; Qualitative skills

Returns to Graduate and Professional Education: The Roles of Mathematical and Verbal Skills by Major

Students in majors with higher average quantitative GRE scores are less likely to attend graduate school while students in majors with higher average verbal GRE scores are more likely to attend graduate school.  This sorting effect means that students whose cognitive skills are associated with lower earnings at the bachelor’s level are the most likely to attend graduate school.  As a result, there is a substantial downward bias in estimated returns to graduate education.  Correcting for the sorting effect raises estimated annualized returns to a Master’s or doctoral degree from about 5% to 14.5% and 12.6% respectively.  Estimated returns to professional degrees rise from 14% to 20%.  These findings correspond to a large increase in relative earnings received by post graduate degree holders in the United States over the past 20 years.sorting; Phd degree; Master's degree; Professional degree; GRE; Returns; Graduate Education; verbal ability; mathematics ability

Documenting the brain drain of « la creme de la creme »: Three case-studies on international migration at the upper tail of the education distribution

Most of the recent literature on the effects of the brain drain on source countries consists of theoretical papers and cross-country empirical studies. In this paper we complement the literature through three case studies on very different regional and professional contexts: the African medical brain drain, the exodus of European researchers to the United States, and the contribution of the Indian diaspora to the rise of the IT sector in India. While the three case studies concern the very upper tail of the skill and education distribution, their effects of source countries are contrasted: clearly negative in the case of the exodus of European researchers, clearly positive in the case of the Indian diaspora’s contribution to putting India on the IT global map, and mixed in the case of the medical brain drain out of Africa.Brain drain, international migration, African medical brain drain, European brain drain, Indian diaspora

Documenting the Brain Drain of «la Crème de la Crème»: Three Case-Studies on International Migration at the Upper Tail of the Education Distribution

Most of the recent literature on the effects of the brain drain on source countries consists of theoretical papers and cross-country empirical studies. In this paper we complement the literature through three case studies on very different regional and professional contexts: the African medical brain drain, the exodus of European researchers to the United States, and the contribution of the Indian diaspora to the rise of the IT sector in India. While the three case studies concern the very upper tail of the skill and education distribution, their effects of source countries are contrasted: clearly negative in the case of the exodus of European researchers, clearly positive in the case of the Indian diaspora’s contribution to putting India on the IT global map, and mixed in the case of the medical brain drain out of Africa.Brain drain, international migration, African medical brain drain, European brain drain, Indian diaspora

Are recent cohorts of women with engineering bachelors less likely to stay in engineering?

Women are an increasing percentage of Bachelors in Engineering (BSEs) graduates—rising from 1% in 1970 to 20% in the 2000s—encouraged by increasing K-12 emphasis on attracting girls to STEM and efforts to incorporate engineering and technology into K-12 curricula. Retention of women in STEM and in engineering in particular has been a concern historically. In this paper, we investigate whether this gap has increased because a larger proportion of females entering engineering find themselves ill-matched to this field, or whether the gap has decreased as engineering becomes more accommodating to women. Using 1993–2010 nationally representative NSF SESTAT surveys, we compare cohorts of BSEs at the same early-career stages (from 1–2 to 7–8 years post-bachelors). We find no evidence of a time trend in the gender gap in retention in engineering and a slightly decreasing gender gap in leaving the labor force. We find, as others have, that the majority of the gender retention gap is due to women leaving the labor force entirely and that this exit is highly correlated with child-bearing; yet women with engineering majors are half as likely as all college-educated women to leave the labor market. There are no clear time trends in female BSEs leaving the labor market. Single childless women are actually more likely than men to remain in engineering jobs. Some of the gender differences in retention we find are caused by differences in race and engineering subfield. With controls for these, there is no gender retention difference by 7–8 years post-bachelors for those full-time employed. There were two unusual cohorts—women with 1991–1994 BSEs were particularly likely to remain in engineering and women with 1998–2001 BSEs were particularly likely to leave engineering, compared to men. Cohorts before and after these revert toward the mean, indicating no time trend. Also, women who leave engineering are just as likely as men to stay in math-intensive STEM jobs

The role of mathematical and verbal skills on the returns to graduate and professional education

Students in majors with higher average quantitative graduate records exam (GRE) scores are less likely to attend graduate school whereas students in majors with higher average verbal GRE scores are more likely to attend graduate school. This sorting effect means that students whose cognitive skills are associated with lower earnings at the bachelor\u27s level are the most likely to attend graduate school. As a result, there is a substantial downward bias in estimated returns to graduate education. Correcting for the sorting effect raises estimated annualized returns to a Master\u27s or doctoral degree from about 5% to 7.3% and 12.8%, respectively. Estimated returns to professional degrees rise from 13.9% to 16.6%. These findings correspond to a large increase in relative earnings received by postgraduate degree holders in the United States over the past 20 years

Research issues in the international migration of highly skilled workers: a perspective with data from the United States

This paper provides a checklist and discussion of the benefits and cost of highly skilled migrants for both sending and receiving countries. When possible it tries to analyse or illustrate these nation-level benefits and costs using data on scientists and engineers in the U.S. labor market or in U.S. graduate education. In contrast to discussions of "brain drain", it is clear that there are many benefits of high-skill migration for sending countries, as well as some negatives for receiving countries. In addition, the greatest gains from migration may not occur at the nation-state level, but globally from gains in knowledge transfer and efficiency