Heterogeneous Returns to Education: Why are Medicine and Pharmacy Majors so Popular in South Korea?

Medicine and pharmacy are the most popular undergraduate majors in South Korea. Unlike in the past, when a degree from a prestigious college was prioritised regardless of the field, many students now opt for lower-selectivity colleges to pursue these majors. This study examines why students are increasingly drawn to medicine and pharmacy by estimating the returns to both college prestige and major choice. The returns to college prestige show a declining trend, discouraging students from enrolling in highly selective institutions. The findings suggest that current hiring regulations based solely on college selectivity may be ineffective in promoting equity.