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

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

Research Institute of Economy, Trade and Industry | Local Language | AcademicThink | Dec. 20, 2024 | UndeterminedEmployment

The analysis of labor market outcomes for doctoral graduates in Japan reveals significant insights regarding employment and earnings based on the 2022 Basic Survey on Employment Structure. It emphasizes a pressing need for policies to foster doctoral talent, as graduates typically enjoy higher employment rates than those with master's degrees, particularly among women.

Doctoral graduates earn over 40% more than their master's counterparts, although this gap narrows to approximately 10% when industry and occupation specifics are considered. This indicates that doctoral graduates may gravitate toward higher-wage roles instead of universally higher salaries.

The gender gap in employment rates for doctoral graduates is narrower compared to master's graduates, yet the wage gap remains similar or slightly wider. Additionally, the discounted present value of lifetime earnings indicates a 17% increase in earnings for men and a 36% increase for women with doctoral degrees versus those with master's degrees. The estimated return on investment for obtaining a doctoral degree is around 10% for both genders, suggesting a positive long-term financial outlook.

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