Although college graduates earn substantial labor market rewards, not all college degrees are rewarded equally. Graduates who majored in female-dominated fields earn substantially lower incomes than do graduates who majored in male-dominated fields. Income differentials that are associated with different types of college majors are extensively noted but poorly understood. This article advances the previous literature by examining how college major affects the labor market outcomes of college graduates through its relationship with employment sector. The results show that graduates of female-dominated fields are disproportionately employed in public and nonprofit organizations, which offer lower monetary rewards but facilitate access to professional and managerial positions. Notably, college major and employment sector interact in ways that reduce income penalties and enhance the occupational location of graduates of female-dominated fields who work in public and nonprofit settings. These findings highlight the importance of considering organizational context in the study of labor market outcomes, particularly when examining the gendered character of educational credentials and occupations.
Detecting Discrimination