The Effect of STEM Education on Earnings in the U.S.

     A recent government policy extended the practical training of international students holding science, technology, engineering or math, collectively known as STEM, Bachelor’s degrees by twenty-four months, indicating... [ view full abstract ]

     A recent government policy extended the practical training of international students holding science, technology, engineering or math, collectively known as STEM, Bachelor’s degrees by twenty-four months, indicating the value of technical education. This measure was taken to address the exponential growth of technology companies creating a high number of STEM positions. I determine a statistically significant relationship between a college major and a college graduate’s earnings by comparing the salaries of STEM degree-holders with those of Business, Social Sciences, and Humanities graduates. Age benefits income levels of graduates from all fields. Comparing earning outcomes of STEM graduates from diverse backgrounds in terms of race, ethnicity and gender ensures robustness. In addition, I find that the salaries of males exceed those of females. The mother’s education level has a positive correlation with a child’s earnings. In conclusion, my research suggests a strong positive relationship between STEM graduates and employment in the private sector. This is in contrast with my findings that Business majors are more commonly self-employed whereas Social Sciences and Humanities graduates are typically employed in non-profits, local and state government.