Comparing Annual Incomes of Science Graduates and Arts Graduates: Results of an Analysis based on JHPS Data

Author Name URASAKA Junko  (Doshisha University Faculty of Social Studies) /NISHIMURA Kazuo  (Faculty Fellow, RIETI / Institute of Economic Research, Kyoto University) /HIRATA Junichi  (Ritsumeikan Asia Pacific University, College of International Management) /YAGI Tadashi  (Doshisha University Faculty of Economics)
Creation Date/NO. March 2011 11-J-020
Research Project Fundamental Research for Creation of a Vibrant Economy and Society in Japan: From the perspectives of complexity
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This paper reviews the annual income difference between science graduates and arts graduates by using data from the Japan Household Panel Survey (JHPS) designed by the Keio University Joint Research Center for Panel Studies.

The results of the study show that the average annual income of science graduates is higher than that of arts graduates in the case of males, with the former being 6,009,900 yen (average age 46) and the latter being 5,590,200 yen (average age 46). Also, the result of calculating the age-income profile for science graduates and arts graduates in a multiple-regression analysis by dividing the data into that for science graduates and that for arts graduates shows that the slope of income rises is steeper for science graduates than it is for arts graduates as age increases and that the income of science graduates from national universities is higher than that of arts graduates after age 40, although it is lower when they are younger.

These results suggest that the added value created is larger for science graduates than for arts graduates. This trend is expected to become even more prevalent in a society where creative ability to produce new value will form the foundation of competitiveness. From that standpoint, it will be necessary for curricula to focus on encouraging the cultivation of science ability.