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College Quality and Earnings in the Japanese Labor Market

The motivations underlying the pursuit of college prestige in Japan presumes a labor market that rewards workers according to the quality of the college that they attended. Yet studies that examine the relationship between college quality and earnings in Japan remain few and are riddled with shortcomings. This article examines the returns to college education among Japanese men using a 1995 cross-sectional data set. I find that college quality significantly improves earnings. My findings confirm that college quality plays a crucial role in shaping incentives and earnings in the Japanese labor market.