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Rich Grad, Poor Grad: Family Background and College Major Choice

Author

Listed:
  • Leighton, Margaret

    (University of St. Andrews)

  • Speer, Jamin D.

    (University of Memphis)

Abstract

Expected earnings matter for college major choices, and majors differ in both their average earnings and the age profile of their earnings. We show that students' family background is strongly related to the earnings paths of the major they choose. Students with more educated parents, especially those who have graduate degrees, choose majors with lower early-career earnings but much faster earnings growth. They are also less likely to choose safe majors with little early-career earnings or unemployment downside. Parental income has a weaker relationship with major choice and operates mostly through the type of institution the student attends.

Suggested Citation

  • Leighton, Margaret & Speer, Jamin D., 2023. "Rich Grad, Poor Grad: Family Background and College Major Choice," IZA Discussion Papers 16099, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16099
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    References listed on IDEAS

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    Cited by:

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    3. Friedman-Sokuler, Naomi & Justman, Moshe, 2024. "Family background, education, and earnings: The limited value of "test-score transmission"," GLO Discussion Paper Series 1388, Global Labor Organization (GLO).

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    More about this item

    Keywords

    college major; family background;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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