The impact of academic achievement on starting wages of russian university graduates

Abstract

This paper analyzes the impact of student academic achievements on future wages of Russian university graduates by looking at GPA-earnings relationship for graduates of one Russian selective university, based on cross-sectional graduate survey data. The issue of how student academic achievement, measured by GPA (Grade Point Average) impact future labor market rewards is analyzed with reference to the set of academic, demographic, and labor market factors. Our results indicate that there is no significant impact of GPA on future earnings for male graduates and significant negative impact for female graduates. The effect of GPA on earnings is insignificant for both gender groups if we control for sectoral segregation. The existence of work experience before graduation is the most significant factor that positively affects future wages. Moreover, we observed high returns to current job tenure. We found no evidence that combining study and work negatively affects student academic achievements.