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The Returns to STEM Programs for Less-Prepared Students

  • Kevin Ng
  • Evan Riehl
American Economic Journal: Economic Policy
vol. 16, no. 2, May 2024
(pp. 37-77)
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Abstract

The returns to selective STEM programs depend on whether students complete these programs, earnings conditional on completion, and counterfactual schooling choices. Much research has focused on only one of these margins, potentially leading to an incomplete picture of the returns to STEM education for students with less academic preparation. Using data from a Colombian University and two empirical strategies, we find less-prepared students have higher earnings returns to selective STEM programs than more-prepared students, even though they are less likely to complete these programs. A key mechanism is that less-prepared students have lower-paying counterfactual schooling options.

Citation

Ng, Kevin, and Evan Riehl. 2024. "The Returns to STEM Programs for Less-Prepared Students." American Economic Journal: Economic Policy, 16 (2): 37-77. DOI: 10.1257/pol.20200694

Additional Materials

JEL Classification

  • I23 Higher Education; Research Institutions
  • I26 Returns to Education
  • J24 Human Capital; Skills; Occupational Choice; Labor Productivity
  • J31 Wage Level and Structure; Wage Differentials
  • O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
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