Does GPA matter for university graduates' wages? New evidence revisited.

ABSTRACT: This paper examines the effect of GPA on graduating students' wages using a data set from an elite university in China. Students are homogenous since their majors are closely related to economics and business The OLS regression results indicate that GPA has positive and significant impacts on wages on average. As GPA increases by 1 unit, the starting monthly wage increases by 29.6 percent on average, and the wage in the survey year that is 3-5 years after graduation (current wage) soars by 25 percent. Theoretically, the GPA matters for the wages due to both the human capital or signaling effect. Given that the signaling effect should diminish over time, and the effect on starting wage is a little larger than that on current wage, it is suggested that signaling effect of GPA should be trivi

SUBMITTER: Zou T 

PROVIDER: S-EPMC9004755 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature