The Role of Education-Industry Match in College Earnings Premia

There is substantial variation in the returns to a college degree. One determinant is whether a worker’s employment is “matched” with their education. With a novel education-industry crosswalk and panel data on 295,000 graduates, we provide the first estimates of an education-industry match premium leveraging within-person variation in earnings. We document which majors have the most and least matching, how earnings premia vary across fields and gender, and how premia evolve over time. With robust estimators, we show that workers in industries “matched” with their degree experience an average earnings premium of 7-11%, with variation by degree level and major.