Do Information on Returns Reduce Gender and Socio-Economic Inequalities in Field of Study Choices? Information on Returns Make a Difference?

It is well known that there are marked gender and social background differences regarding field of study-choices. At the same time graduating from different fields of study leads to different labor market returns both in terms of income and occupational prestige thereby transferring inequalities in the educational system to the labor market. In this paper I ask whether gender- and social background-specific differences in field of study-choices are not only due to socialization processes and role models, but also to information deficits on returns and whether such inequalities can be reduced by providing information on this topic. To answer these questions I use data from a field-experimental longitudinal study on high school students in Berlin, Germany (5 waves, one year before high school graduation – 1.5 years afterwards).The first questionnaire included questions on aspired educational levels and fields within these levels. After the first survey we provided information on labor market returns to students from 8 (out of 27) randomly selected schools. We focus on students who plan to enroll in college and analyze whether those in the treatment group more frequently change their field of study in an upward direction (i.e. towards more rewarding fields) than students in the control group and whether this reduces social background and gender differences in field of study-choices. We examine different outcomes: first, students' fields of study-plans three months after the treatment, second, applications for and third, enrollment in different fields of study. As admission restrictions strongly vary by field of study in Germany, the distinction between these outcomes also yields insights into the question whether enrollments mirror (changes in) preferences or whether they are also due to institutional selection processes. The findings provide important insights into the mechanisms behind inequality within the higher education system and - ultimately - the labor market.