Volume 24, Number 3 (Summer) 1989
Mathios, Alan D. 1989. "Education, Variation in Earnings, and Nonmonetary Compensation." Journal of Human Resources 24(3):456-468.
The NAS-NRC Twin Offspring data support the proposition that for those with low levels of education, earnings may be an adequate proxy for compensation, whereas the opposite holds for highly educated individuals. The inclusion of variables that control for reasons (monetary or nonmonetary) individuals chose their occupation explains an additional 9 percent of the variation in earnings for those with 16 or more years of education (and lowers the male-female wage gap by almost 40 percent) and only an additional 2 percent for those with 15 years or less (no effect on male-female wage gap).
This work is taken from the author's dissertation which was written at the University of Pennsylvania. The author is currently at the Federal Trade Commission. This paper reflects the views of the author and not necessarily the views of the Federal Trade Commission or of any individual Commissioner. He would like to thank David Albright, David Gray, Christopher Jencks, Paul Kupiec, Peter Linneman, Shelly Lundberg, Janis Pappalardo, and Paul Taubman for their insightful comments. He also extends thanks to the participants of workshops at the University of Chicago, MIT, UCLA, University of Pennsylvania, University of Rochester, Rutgers University, and Hunter College. The usual caveat applies.
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