Superstar firms and college major choice

Choi, Darwin, Lou, Dong ORCID: 0000-0002-5623-4338 and Mukherjee, Abhiroop (2024) Superstar firms and college major choice. Journal of Political Economy Microeconomics. ISSN 2832-9368 (In Press)

Text (ChoiLouMuk) - Accepted Version Pending embargo until 1 January 2100. Download (544kB)

Abstract

We study the relation between the presence of superstar firms and college students’ major choice. Occurrences of superstar performers in an industry are followed by a sharp rise in the number of college students choosing to major in related fields. This cohort effect remains significant after controlling for lagged industry returns and wages. Students’ tendency to follow superstars, however, is met with lower real wages earned by entry-level employees when these students enter the job market. Further evidence from two college-graduate surveys shows that such adverse career outcomes can last for decades.

Item Type:	Article
Additional Information:	© 2024
Divisions:	Finance
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance
JEL classification:	D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty D - Microeconomics > D9 - Intertemporal Choice and Growth > D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
Date Deposited:	19 Nov 2024 17:15
Last Modified:	20 Dec 2024 14:48
URI:	http://eprints.lse.ac.uk/id/eprint/126111

Actions (login required)

View Item