Why do parental education effects on wages differ by study fields? An analysis of bachelor- and master graduates in Austria

Abstract

From an equity perspective, it is important that higher education graduates have the same labour market opportunities after graduation regardless of their social background. However, empirical evidence on the direct effect of parental education on labour market outcomes is mixed, with heterogeneous effects across fields of study. A common finding is that social origin is more relevant for labour market success for graduates in business, law, and the arts than for graduates in engineering, IT, or medicine. Analysis of comprehensive Austrian administrative data show disadvantages for first-generation graduates compared to graduates with tertiary educated parents in some fields (e.g. law), but advantages in others (e.g. engineering). Multilevel models show that the composition of study fields in terms of first-generation graduates plays a crucial role in explaining these differences. Other factors such as the distinction between ‘soft’ and ‘hard’ disciplines or the proportion of graduates working in more bureaucratic institutions play no or a lesser role.