Abstract
This study investigates the relationships between college majors, occupations, and earnings among college graduates with STEM degrees, focusing on variations across sex and racial/ethnic groups. Using data from the American Community Survey (ACS) and the Occupational Information Network (O*NET), we find a modest alignment between STEM degrees and STEM occupations, with a significant proportion of STEM graduates working in non-STEM fields. Notably, females and racial/ethnic minorities (except Asians) are less likely to pursue high-skill STEM occupations compared to their male and Asian/White counterparts. Additionally, our findings reveal substantial variations in earnings premiums among STEM majors based on their occupations. High-skill STEM occupations offer the largest earnings premiums, followed by high-skill non-STEM occupations. In contrast, there is little to no earnings premium for STEM degree holders working in basic-skill occupations. These results underscore the critical role of occupations in shaping the STEM workforce and highlight their impact on earnings disparities associated with sex and race/ethnicity.
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