Relationship Between Academic Performance and Expected Lifetime Wages for Men Graduating From the Same College: Focus on Learning Efficiency and Employment Efficiency

Abstract

 This paper aims to elucidate the relationship between “learning efficiency,” which considers the correlation between education and academic performance, and “employment efficiency,” which gauges the relationship between education and employment and concomitant wages, focusing on these two efficiencies pertinent to college education.

 Drawing upon previous studies, we used ten years of data from four liberal arts colleges within a single university, while controlling for educational investment costs and academic performance. We then integrate existing models of learning and employment efficiency (the IEO model and the study habits hypothesis) and conduct an analysis based on high school, college, and societal frameworks. The analysis employed college grades as a metric for learning efficiency and expected lifetime wages as a measure of employment efficiency.

 The results indicate that, (1) with respect to employment efficiency, variations in expected lifetime wages as an output emerge within the same university, controlling for education as an input, and (2) university performance in terms of learning efficiency increases expected lifetime wages in terms of employment efficiency, thus affirming the relationship between learning and employment efficiency.