Your first job after college graduation may have an even bigger impact on your future earnings than the degree itself, according to a recent study from Columbia University's Community College Research Center at Teachers College.
The study used two decades of administrative education data on bachelor's degree graduates spanning 11 individual four-year colleges and found a persistent pay gap between students from lower-income and higher-income families, one that can't be explained by academics alone.
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The difference, researchers say, comes down to how smoothly graduates transition into their first job. Those from higher-income backgrounds tend to secure full-time work earlier, often with better-paying employers or in industries with stronger long-term growth. Whereas lower-income graduates are more likely to face delays, underemployment, or lower-wage starting positions that can stunt their earnings years later.
Once researchers accounted for the salary, employer and industry of a graduate's first job, the unexplained earnings gap between income groups shrank by nearly two-thirds. In other words, your first job is a launchpad that can shape your entire financial trajectory.
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Why That First Job Matters So Much
According to the data, first-job earnings alone account for nearly half of the variation in income five years after graduation. Industry choice explains about 11%, while major choice explains around 10%. Even the employer's average pay level makes a difference.
The disparities start in school. Lower-income graduates were less likely to have job offers lined up before graduation at just 34%, compared to 40% among their higher-income peers. They also started with lower salaries at $37,600 compared to their higher-income peers who earned $42,700. They're also more likely to work for firms with lower average wages.
That early disadvantage compounds over time. The study also found that graduates who start out in lower-paying jobs tend to switch employers less frequently, move up more slowly and earn less even years later, regardless of their major.
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What Can New Grads Do
Though your college degree can get you in the door, the role you land after graduation is generally what determines how quickly you build momentum in your career.
So make sure to start your job search early, talk to mentors and alumni and take internships seriously while you're in school because they could lead to full-time offers. If your first job isn't ideal, use it as a training ground to build skills and bring you closer to the kind of career and income you want down the line.
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