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

Author

Listed:
  • Adler, Katharina

    (University of Würzburg)

  • Kosse, Fabian

    (University of Würzburg)

  • Nagler, Markus

    (Friedrich Alexander Universität Erlangen-Nürnberg, Germany)

  • Rincke, Johannes

    (University of Erlangen-Nuremberg)

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

  • Adler, Katharina & Kosse, Fabian & Nagler, Markus & Rincke, Johannes, 2025. "Earnings Expectations of “First-in-Family” University Students and Their Role for Major Choice," IZA Discussion Papers 17720, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17720
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    Keywords

    earnings expectations; higher education; first-generation; socio-economic gaps;
    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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