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Superstar Firms and College Major Choice

Author

Listed:
  • Darwin Choi
  • Dong Lou
  • Abhiroop Mukherjee

Abstract

We study the relation between the presence of superstar firms and college students’ major choice. Occurrences of superstar performers in an industry are followed by a sharp rise in the number of college students choosing to major in related fields. This cohort effect remains significant after controlling for lagged industry returns and wages. Students’ tendency to follow superstars, however, is met with lower real wages earned by entry-level employees when these students enter the job market. Further evidence from two college graduate surveys shows that such adverse career outcomes can last for decades.

Suggested Citation

  • Darwin Choi & Dong Lou & Abhiroop Mukherjee, 2026. "Superstar Firms and College Major Choice," Journal of Political Economy Microeconomics, University of Chicago Press, vol. 4(2), pages 461-502.
    • Handle: RePEc:ucp:jpemic:doi:10.1086/736929
    DOI: 10.1086/736929
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