Economic Returns on Human Capital: Comparative Outcomes for Engineering Graduates at Top Universities

• In Event: Economic Sociology Section Roundtables
  In Refereed Roundtable (60 minute): Roundtable 11: Socioeconomic Inequality

Abstract

This study examines the economic returns on human capital investment in undergraduate engineering education across five leading institutions: University of Michigan–Ann Arbor, University of California-Berkeley, Massachusetts Institute of Technology, Stanford University, and Purdue University-Main Campus. Using data from the U.S. Department of Education College Scorecard for 2022–2023, we analyze institutional characteristics, student demographics, cost of attendance, and post-graduation earnings for engineering graduates.
Descriptive and comparative analyses reveal that the University of Michigan–Ann Arbor demonstrates notable strengths in affordability, academic entry scores, and completion rates, particularly compared to public peer institutions. However, disparities persist in mid-career earnings among graduates, especially when compared to peers from elite private universities. Socioeconomic background remains a significant factor, with non-Pell recipients consistently earning more than Pell recipients across all institutions. Gender-based income gaps are minimal, but differences in earnings by socioeconomic status and institutional prestige are statistically significant.
Results show that while engineering graduates from all institutions achieve strong financial returns over time, growth in early- to mid-career earnings for University of Michigan and Purdue graduates lags behind those from Berkeley, MIT, and Stanford. These gaps indicate limited access to elite labor markets and employer networks for graduates from less prestigious institutions. Additionally, high student debt burdens and moderate loan repayment rates among underrepresented and low-income students underscore the importance of expanding equity-focused financial aid and support.
This research underscores the persistent influence of institutional prestige and socioeconomic background on labor market outcomes for engineering graduates. The findings suggest that improving graduate access to elite employment pathways and strengthening inclusive career development resources are essential for advancing economic mobility. Future research should incorporate factors such as internship experience and geographic mobility to deepen understanding of returns on engineering education.

Author

• Victoria Osten, University of Michigan-Ann Arbor