First Job After College Has Lasting Impact on Earnings, Study Finds

Columbia University and the National Bureau of Economic Research reveal a persistent earnings gap tied to graduates' first jobs. Lower-income students face a 12% earnings disadvantage five years post-graduation, even after accounting for academic performance and field of study.

The research tracked 80,000 public university graduates, showing how initial employment decisions compound over time. "The magnitude of the earnings gap explained by first job transitions surprised us," said Judith Scott-Clayton, the study's lead author. Early career stability proves critical—graduates who secure positions before or immediately after graduation and maintain them for two years see significantly higher long-term earnings.

This structural disadvantage hits first-generation and low-income students hardest, as they're more likely to accept lower-paying positions at less competitive firms. The findings underscore the importance of strategic career planning during the transitional period following graduation.