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Earnings Expectations of “First-in Family” University Students and Their Role for Major Choice

Author

Listed:
  • Katharina Adler
  • Fabian Kosse
  • Markus Nagler
  • Johannes Rincke

Abstract

How do students’ earnings expectations differ by being the first in their family to attend university (FiF) and how do they affect field of study choice? We leverage unique survey and administrative data from a German university to document sizable gaps in expected earnings between FiF and non-FiF students. Our data can explain two-thirds of this gap, with the largest share attributable to field of study choice. We show that FiF students sort less into study fields based on their earnings expectations. Investigating potential explanations, we find that they expect lower own ability and worse non-wage amenities in high-earning fields.

Suggested Citation

  • Katharina Adler & Fabian Kosse & Markus Nagler & Johannes Rincke, 2025. "Earnings Expectations of “First-in Family” University Students and Their Role for Major Choice," CESifo Working Paper Series 11700, CESifo.
    • Handle: RePEc:ces:ceswps:_11700
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp11700.pdf
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    More about this item

    Keywords

    socio-economic gaps; first-generation; higher education; earnings expectations;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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