The Effect of the Awareness of the Importance of Liberal Education on the Wage and Job Satisfaction in the Labor Market

Abstract

This paper conducted an empirical analysis of the effect of awareness of the importance of liberal arts education on individual wages, job satisfaction, and non-cognitive ability using data from the 11th and 18th supplementary surveys of the 「Korea Labor and Employment Panel Survey」.The main findings were as follows: First, individuals who recognized that liberal arts education in college was important received approximately 9% to 13% higher hourly wages in the labor market after graduation than individuals who did not. Second, individuals who recognized that liberal arts education was helpful in their work life had higher overall job satisfaction than individuals who did not, and highly valued the work they were doing. Third, individuals with a positive perception of liberal arts education showed a locus of control score (one of the measures of non-cognitive ability) of about 0.15 standard deviation points higher than those who did not. This accounts for about one-tenth of the wage gaps generated by the differences in the degrees of perception regarding liberal arts educationThis result is presumed to be because liberal arts education cultivates both cognitive and non-cognitive abilities, and at the same time, liberal arts education is more effective in an uncertain environment than in a stable one.