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Career preferences and socio-economic background

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  • Schüle, Paul

Abstract

Career decisions, that is educational and occupational choice, are not only taken by comparing expected incomes, but also by considering non-monetary rewards such as social impact, chances of promotion, or the compatibility of work and family. In this paper, I use rich panel data from Germany and the UK to demonstrate that preferences about such aspects of a career as stated at age 17 are strong predictors of future earnings in the labor market. At the same time, these preferences differ significantly by gender and socio-economic background, and intergenerational income persistence is reduced by 7 to 28 percent when accounting for career preferences.

Suggested Citation

  • Schüle, Paul, 2026. "Career preferences and socio-economic background," Labour Economics, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:labeco:v:98:y:2026:i:c:s0927537125001381
    DOI: 10.1016/j.labeco.2025.102814
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    Keywords

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    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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