Analyzing wage differentials by fields of study: Evidence from Sri Lanka

Aspirants of higher education and their parents often face a dilemma over the selection of a field of study which pays off handsomely in the job market. This article is based on a study which investigated investigates graduate wage differentials associated with primary employment by fields of study. It employed both mean and quantile regression specifications to the nationally representative labour force survey data. The study found Engineering, Medicine, Management, Commerce, and Law graduates enjoy statistically significant positive wage premiums compared to graduates of Arts. Moreover, these wage premiums are relatively larger in the upper segment of the graduate wage distribution compared to the lower segment. Relatively smaller and statistically weaker wage premiums were observed for Science and Information Technology fields of study whereas graduates of Agriculture and Indigenous Medicine do not enjoy a wage premium over graduates of Arts. The study also found a significant gender pay gap in Management, Commerce, and Science fields of study.