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http://dx.doi.org/10.7465/jkdi.2017.28.5.1099

The wage determinants of college graduates using Heckman's sample selection model  

Cho, Jangsik (Division of Mathematics and Applied Statistics, Kyungsung University)
Publication Information
Journal of the Korean Data and Information Science Society / v.28, no.5, 2017 , pp. 1099-1107 More about this Journal
Abstract
In this study, we analyzed the determinants of wages of college graduates by using the data of "2014 Graduates Occupational Mobility Survey" conducted by Korea Employment Information Service. In general, wages contain two complex pieces of information about whether an individual is employed and the size of the wage. However, in many previous researches on wage determinants, sample selection bias tends to be generated by performing linear regression analysis using only information on wage size. We used the Heckman sample selection models for analysis to overcome this problem. The main results are summarized as follows. First, the validity of the Heckman's sample selection model is statistically significant. Male is significantly higher in both job probability and wage than female. As age increases and parents' income increases, both the probability of employment and the size of wages are higher. Finally, as the university satisfaction increases and the number of certifications acquired increased, both the probability of employment and the wage tends to increase.
Keywords
Censored data; Heckman's sample selection model; Sample selection bias;
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Times Cited By KSCI : 4  (Citation Analysis)
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