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Table 5 Test of random-effects assumption (model with and without cluster mean of earnings indicator)

From: Place of study, field of study and labour-market region: What matters for wage differences among higher-education graduates?

 

M4a

M4a_CM

Grade of entrance certificate (reverse-coded)

0.037** (0.012)

0.037** (0.012)

Gender (female)

− 0.074*** (0.016)

− 0.074*** (0.016)

Age (years)

0.011** (0.003)

0.011** (0.003)

Parents have higher education

0.013 (0.014)

0.013 (0.014)

Degree at type of institution (ref. diploma—UAS)

 Diploma/Magister—Univ.

0.029 (0.023)

0.029 (0.023)

 Bachelor—UAS

− 0.106*** (0.023)

− 0.106*** (0.023)

 Bachelor—Univ.

− 0.164*** (0.030)

− 0.165*** (0.030)

 State Examination—UAS

− 0.078~ (0.041)

− 0.078~ (0.041)

NUTS-2 earnings (in €100)

0.016*** (0.002)

0.014*** (0.003)

Cluster mean of NUTS-2 earnings (in €100)

 

0.002 (0.004)

Constant

1.844*** (0.127)

1.821*** (0.132)

Random-effects part

 SD (HEI)

0.024*** (0.021)

0.023*** (0.021)

 SD (Individual)

0.156*** (0.019)

0.156*** (0.019)

 SD (FoS)

0.317*** (0.005)

0.317*** (0.005)

Log-Likelihood

− 645.644

− 645.457

LR-test (chi-square)

 

0.374

LR-test (p)

 

0.541

ICC HEI

0.004

0.004

ICC FoS

0.194

0.194

N individuals

2175

2175

N HEI

147

147

N FoS

53

53

  1. Standard errors in parentheses; standard deviations of random effects are reported
  2. ~ < 0.10, *p < 0.05, **p < 0.01, ***p < 0.001
  3. Data source: DZHW Graduate Panel 2009, BBSR Bonn 2019, authors’ calculations
  4. UAS university of applied sciences, Univ. university, HEI higher-education institution, FoS field of study