Labor Market Outcomes for Doctoral Graduates in Japan: Evidence from a large statistical survey

Amid concerns about Japan’s declining research capability, policies to support doctoral human resources are actively discussed. This study uses micro data from the 2022 Employment Status Survey to analyze the labor market outcomes of postgraduates by dividing them into doctoral and master’s graduates. According to the analysis, first, the employment rate of doctoral graduates is higher than that of master’s graduates, and the difference is particularly large for females. Second, doctoral graduates are paid 40% more than master’s graduates. Third, controlling for detailed industries and occupations, the wage difference between doctoral and master’s graduates reduces to about 10%. This suggests that doctoral graduates self-select into higher-paying industries and occupations. Fourth, the discounted present value of lifetime earnings for doctoral graduates is 17% higher for male and 36% higher for female than for master’s graduates. The estimated internal rate of return on investment in doctoral education is around 10% for both males and females.

This is the English version of the Japanese Discussion Paper (24-J-016) with some additional information and changes.