"Salary Varies by University Ranking"… Graduating from SKY Universities Can Increase Pay by Up to 50%

A research study has revealed that wage gaps can widen up to 50% depending on the ranking of the university from which one graduated.

On the 10th, when the rainy season rain was forecasted again nationwide, citizens in Seoul are heading to work with umbrellas on Sejong-daero. Photo by Jinhyung Kang aymsdream@

According to the paper titled "University Ranking and Lifetime Wage Gap," published in the 2023 Issue 2 of the Korean Economic Association's journal Economic Studies on the 11th, graduates aged 40 to 44 from top-tier universities earn 50.5% more than those from the lowest-tier universities.

The study classified 143 universities into five groups using the college entrance exam scores by department from 1998 to 2000.

The top-tier group, Group A, consists of 16 universities including Seoul National University, Yonsei University, Korea University, Sogang University, Sungkyunkwan University, and Ewha Womans University. Group B includes 16 universities, Group C has 33 universities, Group D has 29 universities, and Group E comprises 49 universities.

The paper analyzed the wage gaps by age group between graduates of Group A universities and those from other groups, converting the differences into percentages. It found that Group A graduates aged 40 to 44 earn 50.5% more than Group E graduates.

For the 40 to 44 age group, Group A graduates earn 39.7% more than Group D graduates, 27.8% more than Group C graduates, and 12.8% more than Group B graduates.

The wage gap between Group A and Group E graduates decreases to 33.2% for ages 45 to 49, 9.9% for ages 50 to 54, and 1.1% for ages 55 to 59.

The paper explains, "In the 45 to 49 age range, when retirement becomes more prevalent, the probability of Group A graduates working at large corporations and being wage earners sharply declines," and analyzes that "many people switching to small and medium-sized enterprises or non-wage employment after retirement seems related to the wage decline phenomenon among Group A graduates."

However, from ages 45 to 49, as retirement from large corporations becomes widespread, retired workers re-enter employment at small and medium-sized enterprises. The paper explains that this leads to a reduction in the wage gap with lower-tier groups.

This content was produced with the assistance of AI translation services.