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Earnings expectations of “First-in Family” university students and their role for major choice

Author

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  • Adler, Katharina
  • Kosse, Fabian
  • Nagler, Markus
  • Rincke, Johannes

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 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 in high-earning fields, FiF students expect lower own ability and worse non-wage amenities than non-FiF students.

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," Labour Economics, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:labeco:v:95:y:2025:i:c:s0927537125000673
    DOI: 10.1016/j.labeco.2025.102743
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    Cited by:

    1. is not listed on IDEAS
    2. Annadurai, Gopinath & Sahoo, Soham, 2025. "Improving First-Generation College Students’ Education and Employment Outcomes: Effects of a Targeted Scholarship Program," IZA Discussion Papers 17879, Institute of Labor Economics (IZA).

    More about this item

    Keywords

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    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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