Purpose This study aims to investigate how college major selection and demographic characteristics influence long-term earnings and career outcomes, with a particular focus on differences across academic fields in an evolving labor market. Design/methodology/approach Using pooled cross-sectional data from the American Community Survey, the study applies a Mincer-style earnings function to compare wage outcomes across five disciplines: business, STEM, education, behavioral and health sciences and arts and letters. Regression models incorporate demographic controls and industry-fixed effects to assess how identity and occupational placement interact to shape earnings. Findings Business and STEM graduates earn higher wages than peers in other fields, but the sources of these advantages differ. The STEM wage premium is primarily explained by concentration in high-paying industries, whereas business degrees deliver more stable returns across sectors. Earnings outcomes also vary significantly by gender, race and immigration status, revealing persistent disparities within and across fields of study. Originality/value Rather than advancing a new estimation technique, this study contributes by integrating labor economics with international business education. By linking wage modeling to demographic heterogeneity and industry placement, it demonstrates how academic pathways, identity and sector access jointly shape earnings in globally connected labor markets. The findings inform international business education by highlighting the importance of advising, employability support and curriculum design that align preparation with cross-sector mobility and global career access.
Bilderback et al. (Thu,) studied this question.