Same Grades, Different Choices and Divergent Outcomes: Early Career Wage Differentials by Attending In‐Seoul Universities

ABSTRACT This study examines whether graduating from an In‐Seoul university is associated with higher early‐career earnings in South Korea. Using individual‐level data and controlling for student ability, particularly College Scholastic Ability Test scores, we find that graduates of In‐Seoul universities earn approximately 8% higher wages than comparable graduates of regional universities. The estimated premium is especially pronounced among high‐achieving students, graduates from non‐metropolitan high schools, women and workers in the upper part of the earnings distribution. These findings suggest that the advantages associated with Seoul‐based universities extend beyond differences in academic ability and are closely linked to the spatial concentration of high‐quality employment opportunities. More broadly, the results highlight the role of geographic inequality in shaping labour market outcomes and underscore the importance of place‐based policies aimed at strengthening regional economies and expanding high‐quality jobs outside the capital region.