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The labor market returns to 'first in family' university graduates

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  • Adamecz-Völgyi, Anna
  • Henderson, Morag
  • Shure, Nikki

Abstract

The labor market returns to 'first in family' university graduates 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. A decomposition of the wage difference between FiF and non-FiF graduates reveals two interesting findings. First, two-thirds of the female FiF penalty are explained by certain characteristics, including: having lower attainment in school, attending an elite university, selecting particular degree courses, working in smaller firms, working in jobs that do not require their degree, and motherhood. Second, FiF graduate men also differ in their endowments from non-FiF graduate men; however, 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 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.

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  • Adamecz-Völgyi, Anna & Henderson, Morag & Shure, Nikki, 2022. "The labor market returns to 'first in family' university graduates," GLO Discussion Paper Series 1057, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1057
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    Cited by:

    1. 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).
    2. 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.
    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. Shure, Nikki & Zierow, Larissa, 2023. "High Achieving First-Generation University Students," IZA Discussion Papers 16654, Institute of Labor Economics (IZA).
    5. Nikki Shure & Larissa Zierow, 2023. "High Achieving First-Generation University Students," CESifo Working Paper Series 10832, CESifo.
    6. 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.
    7. 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.

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    More about this item

    Keywords

    socioeconomic gaps; intergenerational educational mobility; higher education; labor market returns; gender economics;
    All these keywords.

    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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