Later timing but informed decision? Delayed postgraduate attainment and U.S. college graduates' earnings.

Prior scholarship devotes scant attention to the economic returns to delayed postgraduate attainment, when college graduates did not enroll immediately but entered the labor market first. While human capital theory posits "better earlier than later", delayed attainment may represent a more deliberate decision informed by the demand side, which facilitates access to better-matched jobs. Utilizing data from National Survey of College Graduates, the study focuses on master's degree recipients who attained their bachelor's degree in 2005-2010 and who were working for pay in 2015. Multivariate analyses suggest delayed attainment yields lower earnings than on-time attainment but only applies to men. After accounting for the selection into delayed vs. on-time attainment, propensity score matching estimates reveal varying delay penalties by sex and college major. More generally, this study adds nuance to the "better earlier than later" hypothesis and underscores the mechanism of delayed postgraduate education for economic stratification among college graduates.