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The labor market returns to ‘first in family’ university graduates

Author

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  • Anna Adamecz-Volgyi

    (UCL Social Research Institute, University College London, 27 Woburn Square, London WC1H 0AA and Institute of Economics, Centre for Economic and Regional Studies (KRTK KTI), Toth Kalman u. 4, 1097 Budapest)

  • Morag Henderson

    (UCL Social Research Institute, University College London, 27 Woburn Square, London WC1H 0AA)

  • Nikki Shure

    (UCL Social Research Institute, University College London, 27 Woburn Square, London WC1H 0AA and Institute of Labor Economics (IZA), Schaumburg-Lippe-Str. 5-9, D-53113 Bonn)

Abstract

We examine how first in family (FiF) graduates (those whose parents do not have university degrees) fare on the labor market. We find that among women, FiF graduates earn 7.4% less on average than graduate women whose parents have a university degree. For men, we do not find a FiF wage penalty. In some specifications FiF men actually earn a premium, although this relationship is not stable across all robustness checks. A decomposition of the wage difference between FiF and non-FiF graduates reveals that FiF men earn higher returns on their endowments than non-FiF men and thus compensate for their relative social disadvantage, while FiF women do not. We also show that a substantial share of the graduate gender wage gap is due to, on the one hand, women being more likely to be FiF than men and, on the other hand, that the FiF wage gap is gendered. Lastly, we estimate the returns to graduation for potential FiF and non-FiF young people. We find that the wage returns to graduation are not lower among FiF graduates compared to those who match their parents with a degree. The effects of coming from a lower educated family are large and positive for men and large and negative for women in general, irrespective of graduation. We provide some context, offer explanations, and suggest implications of these findings.

Suggested Citation

  • Anna Adamecz-Volgyi & Morag Henderson & Nikki Shure, 2021. "The labor market returns to ‘first in family’ university graduates," DoQSS Working Papers 21-20, Quantitative Social Science - UCL Social Research Institute, University College London.
    • Handle: RePEc:qss:dqsswp:2120
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    2. Edwards, Rebecca & Gibson, Rachael & Harmon, Colm & Schurer, Stefanie, 2022. "First-in-their-family students at university: Can non-cognitive skills compensate for social origin?," Economics of Education Review, Elsevier, vol. 91(C).
    3. 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).
    4. Nikki Shure & Larissa Zierow, 2023. "High Achieving First-Generation University Students," CESifo Working Paper Series 10832, CESifo.
    5. Anna Adamecz-Völgyi & Morag Henderson & Nikki Shure, 2023. "The labor market returns to “first-in-family” university graduates," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1395-1429, July.
    6. 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).
    7. Li, Haizheng & Liu, Qinyi & Su, Yan & Ederer, Peer, 2023. "Policy initiatives, self-sorting, and labor market effects of tertiary education for adult workers," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 205-221.
    8. Anna Adamecz-Volgyi & Yuyan Jiang & Nikki Shure & Gill Wyness, 2023. "Intergenerational educational mobility and the COVID-19 pandemic," CEPEO Working Paper Series 23-08, UCL Centre for Education Policy and Equalising Opportunities, revised Aug 2023.

    More about this item

    Keywords

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    JEL classification:

    • 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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