Degrees of Return: Estimating Internal Rates of Return for College Majors Using Quantile Regression

• In Event: Educational Accessibility and Mobility: Assessing Equity and Outcomes

Abstract

Using data collected from over 6.3 million high school and college graduates ages 18–65 who participated in the American Community Survey (ACS) between 2009 and 2021, we estimate the internal rates of return (IRRs) for individuals with college degrees in 11 broad majors compared to high school graduates. Our analysis shows significant differences in the age-earnings trajectories and IRRs across college majors. Furthermore, the analyses using quantile regression show that IRR is generally higher at the high end of the earnings distribution compared to the low end. Finally, while we do not observe changes in IRR, the study period coincided with a substantial shift in the supply of college graduates across majors.

Authors

• Liang Zhang, New York University

• Xiangmin Liu, Rutgers University

• Yitong Hu, New York University