<p>Math is easier if you are smarter. As such, math education is a costly and therefore credible signal of general intelligence. Below are two experiments that try to get around this selection issue by looking at exogenous variation in worker mathematical ability on labor market outcomes. However, a word of caution. They do not present evidence that mathematical education makes you more productive. Even if all mathematical education is is a signal of intelligence, it can be valuable to individual workers to get more mathematical education, and they will on average benefit from interventions that lower the cost of getting a mathematical education  </p>

<blockquote>
  <p>We examine the link between math skills and labor-market outcomes
  using a resume-based field experiment. Specifically, we send
  fictitious resumes in response to online job postings, randomly
  assigning some resumes to indicate stronger math skills, and measure
  employer responses. The resumes that are randomly assigned to indicate
  stronger math skills receive more interest from employers than the
  comparison resumes. Our findings add to the body of evidence showing
  that stronger math skills positively affect labor-market outcomes.</p>
</blockquote>

<p>Math skills and labor-market outcomes: Evidence from a resume-based field experiment by <a href="https://www.sciencedirect.com/science/article/pii/S0272775711001531" rel="noreferrer">Koedel and Tyhurst (2012)</a></p>

<blockquote>
  <p>Outsourcing  of  jobs  to  low-wage  countries  has  increased  the 
  focus  on  the  accumulation  of skills – such as Math skills – in
  high-wage count ries. In this paper, we exploit a high school pilot 
  scheme  to  identify  the  causal  effect  of  advanced  high  school 
  Math  on  labor  market outcomes.  The  pilot  scheme  reduced  the 
  costs  of  choosing  advanced  Math  because  it  allowed for at more
  flexible combination of Math with other courses. We find clear
  evidence of  a  causal  relationship  between  Math  and  earnings 
  for  the  students  who  are  induced  to  choose  Math  after  being 
  exposed  to  the  pilot  scheme.  The  effect  partly  stems  from 
  the  fact  that these students end up with higher education.</p>
</blockquote>

<p>Is there a causal effect of high school math on labor market outcomes? by 
<a href="ftp://repec.iza.org/SSRN/pdf/dp2357.pdf" rel="noreferrer">Joensen and Nielsen (2009)</a></p>

CC BY-SA 4.0
2018-08-09T15:29:35.133Z
Does this imply that if poor country put tons of money in teaching math, instead of providing better nutrients, monetary support to the poverty will bring brighter future/higher salary ?
mootmoot
CC BY-SA 4.0
2018-08-09T19:51:51.707Z
No, because the evidence is consistent with math education serving a pure signaling role
BKay
CC BY-SA 4.0
2018-08-08T14:16:02.683Z
2018-08-08T14:16:02.683Z
BKay
<p>In some sense this is a follow-up to</p>

<p><a href="https://economics.stackexchange.com/questions/3141/correlation-between-salary-level-and-housing-prices-in-a-town">Correlation between salary level and housing prices in a town</a></p>

<p>There I was reminded to ask for causality, not correlation. I am interested in the causal effect of mathematical education on salaries even if I do not use those words below.</p>

<p>Now, my question is the following: does mathematical education result in a better salary? Here, by mathematical education, I do not mean mathematics as a major but rather a major with heavy mathematics in it. Probably a better formulation is this: is there any literature on whether studying applied mathematics pays off? Again not an Applied Mathematics as a curriculum per se, but a course with heavy applied math content.</p>

CC BY-SA 4.0
2018-08-08T10:40:30.833Z
This looks more like a career advice than an economics question.
Michael Greinecker
CC BY-SA 4.0
2018-08-08T10:41:56.447Z
Looks, but not. I am really interested if there is some research on this with data, as to the other question there were such answers.
Gergely
CC BY-SA 4.0
2018-08-09T15:27:32.013Z
Math is never a good casualty. A person that well verse in math normally come from resourceful family. Though there is outlier from poor family, but by overall, it is still the resourceful family that affect the future salary of a person earn.
mootmoot
CC BY-SA 4.0
2018-08-28T11:40:22.630Z
I disagree here, learning mathematics does not presume a wealthy family.
Gergely
<reference-request><education-economics><causality>
Does mathematical education imply a better salary?
Gergely
# Does mathematical education imply a better salary?

(Asked by: username_0 on 2018-08-08)

In some sense this is a follow-up to

[Correlation between salary level and housing prices in a town](https://economics.stackexchange.com/questions/3141/correlation-between-salary-level-and-housing-prices-in-a-town)

There I was reminded to ask for causality, not correlation. I am interested in the causal effect of mathematical education on salaries even if I do not use those words below.

Now, my question is the following: does mathematical education result in a better salary? Here, by mathematical education, I do not mean mathematics as a major but rather a major with heavy mathematics in it. Probably a better formulation is this: is there any literature on whether studying applied mathematics pays off? Again not an Applied Mathematics as a curriculum per se, but a course with heavy applied math content.

**Tags:** reference-request, education-economics, causality

> **Comments:**
> **username_1**: This looks more like a career advice than an economics question.  
> **username_0**: Looks, but not. I am really interested if there is some research on this with data, as to the other question there were such answers.  
> **username_2**: Math is never a good casualty. A person that well verse in math normally come from resourceful family. Though there is outlier from poor family, but by overall, it is still the resourceful family that affect the future salary of a person earn.  
> **username_0**: I disagree here, learning mathematics does not presume a wealthy family.  

---

## 1 answers

### Answer by username_3 on 2018-08-08. Score: 5 | Accepted answer

Math is easier if you are smarter. As such, math education is a costly and therefore credible signal of general intelligence. Below are two experiments that try to get around this selection issue by looking at exogenous variation in worker mathematical ability on labor market outcomes. However, a word of caution. They do not present evidence that mathematical education makes you more productive. Even if all mathematical education is is a signal of intelligence, it can be valuable to individual workers to get more mathematical education, and they will on average benefit from interventions that lower the cost of getting a mathematical education

> We examine the link between math skills and labor-market outcomes
> using a resume-based field experiment. Specifically, we send
> fictitious resumes in response to online job postings, randomly
> assigning some resumes to indicate stronger math skills, and measure
> employer responses. The resumes that are randomly assigned to indicate
> stronger math skills receive more interest from employers than the
> comparison resumes. Our findings add to the body of evidence showing
> that stronger math skills positively affect labor-market outcomes.

Math skills and labor-market outcomes: Evidence from a resume-based field experiment by [Koedel and Tyhurst (2012)](https://www.sciencedirect.com/science/article/pii/S0272775711001531)

> Outsourcing of jobs to low-wage countries has increased the
> focus on the accumulation of skills – such as Math skills – in
> high-wage count ries. In this paper, we exploit a high school pilot
> scheme to identify the causal effect of advanced high school
> Math on labor market outcomes. The pilot scheme reduced the
> costs of choosing advanced Math because it allowed for at more
> flexible combination of Math with other courses. We find clear
> evidence of a causal relationship between Math and earnings
> for the students who are induced to choose Math after being
> exposed to the pilot scheme. The effect partly stems from
> the fact that these students end up with higher education.

Is there a causal effect of high school math on labor market outcomes? by
[Joensen and Nielsen (2009)](ftp://repec.iza.org/SSRN/pdf/dp2357.pdf)

> **Comments:**
> **username_2**: Does this imply that if poor country put tons of money in teaching math, instead of providing better nutrients, monetary support to the poverty will bring brighter future/higher salary ?  
> **username_3**: No, because the evidence is consistent with math education serving a pure signaling role  

---

