Why college majors and selectivity matter: Major groupings, occupation specificity, and job skills

In: Contemporary economic policy: a journal of Western Economic Association International, Volume 42, Issue 2, p. 278-304

Open Access

Abstract

AbstractWe provide new approaches to examining the returns to college majors and institutional selectivity. Using unique resume data, we devise new groupings of majors and use these to construct five measures that characterize majors. Applying these measures to the National Survey of College Graduates, we find that majors that lead to jobs that are math‐intensive or writing‐intensive have higher earnings and also a higher return to selectivity. Majors that are occupationally specific also have higher earnings but have a lower return to institutional selectivity. We find that the value of selectivity relative to major increases as selectivity rises.