Field of study variation throughout the college pipeline and its effect on the earnings gap: Differences between ethnic and immigrant groups in Israel

Abstract

This study demonstrates the analytical leverage gained from considering the entire college pipeline-including the application, admission and graduation stages-in examining the economic position of various groups upon labor market entry. The findings, based on data from three elite universities in Israel, reveal that the process that shapes economic inequality between different ethnic and immigrant groups is not necessarily cumulative. Field of study stratification does not expand systematically from stage to stage and the position of groups on the field of study hierarchy at each stage is not entirely explained by academic preparation. Differential selection and attrition processes, as well as ambition and aspirations, also shape the position of ethnic groups in the earnings hierarchy and generate a non-cumulative pattern. These findings suggest that a cross-sectional assessment of field of study inequality at the graduation stage can generate misleading conclusions about group-based economic inequality among workers with a bachelor's degree.

Keywords: College pipeline; Earnings gap; Ethnic inequality; Field of study; Israel; Undermatching.