Educational Attainment and Nonwage Labor Market Returns in the United States

Abstract

Although decades of research highlight the impact of schooling on earnings, less evidence exists regarding other employment outcomes. Nonwage labor market returns to education are important in the United States, where health insurance and retirement income are typically tied to employment. Using longitudinal, nationally representative data, we examine the role of educational attainment in predicting nonwage employment outcomes and control for a host of individual and institutional measures. Even after controlling for individual and institutional characteristics, results indicate that educational attainment predicts employment and markers of “good” jobs, like access to employer-provided health and dental insurances, retirement plans, and paid leave. Furthermore, by delineating between various subbaccalaureate levels of college attainment, our results illustrate the complex variation in returns to college for those who did not complete a 4-year degree.