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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, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp16099
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    References listed on IDEAS

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    Cited by:

    1. Hans Ophem & Jacopo Mazza, 2024. "Educational choice, initial wage and wage growth," Empirical Economics, Springer, vol. 67(3), pages 1235-1274, September.
    2. Delaney, Judith M. & Devereux, Paul J., 2025. "Levelling the Playing Field? SES Differences in Graduate Degree Choices," IZA Discussion Papers 17652, IZA Network @ LISER.
    3. Naomi Friedman-Sokuler & Moshe Justman, 2025. "Family background, education, and earnings: the limited value of “test-score transmission”," Review of Economics of the Household, Springer, vol. 23(3), pages 1075-1112, September.

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    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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