Beyond the STEM degree: Investigating relationships among STEM majors, occupations, and earnings

This study investigates the relationships between college majors, occupations, and earnings among college graduates with STEM degrees, focusing on variations across sex and racial/ethnic groups. Using data from the American Community Survey (ACS) and the Occupational Information Network (O*NET), we find a modest alignment between STEM degrees and STEM occupations, with a significant proportion of STEM graduates working in non-STEM fields. Notably, females and racial/ethnic minorities (except Asians) are less likely to pursue high-skill STEM occupations compared to their male and Asian/White counterparts. Additionally, our findings reveal substantial variations in earnings premiums among STEM majors based on their occupations. High-skill STEM occupations offer the largest earnings premiums, followed by high-skill non-STEM occupations. In contrast, there is little to no earnings premium for STEM degree holders working in basic-skill occupations. These results underscore the critical role of occupations in shaping the STEM workforce and highlight their impact on earnings disparities associated with sex and race/ethnicity.