Beyond the STEM Degree: Investigating the Relationship Among STEM Majors, Occupational Choices, and Earnings Disparities

• In Event: Higher Educaton Pathways: From High School to College and Beyond

Abstract

This paper investigates the relationship between college majors, occupational choices, and earnings disparities across sex and racial/ethnic groups among college graduates with STEM degrees. A large proportion of STEM graduates work in non-STEM occupations. In particular, female and racial/ethnic minorities are more likely to choose basic-skill and high-skill non-STEM occupations than their male and Asian/white counterparts. High-skill STEM occupations offer the largest earnings premiums, followed by high-skill non-STEM occupations. Remarkably, there is no earnings premium associated with a STEM degree among college graduates who work in basic-skill occupations. These results underscore the crucial role of occupational choices in shaping the development of the STEM workforce and highlight their influence on earnings disparities across sex and racial/ethnic groups.

Authors

• Liang Zhang, New York University

• Xiangmin Liu, Rutgers University