The Economics Show
The Economics Show

Why even a PhD isn’t enough to erase the effects of class, with Anna Stansbury

Race and gender have dominated headlines about economic outcomes in the past decades, but class … not so much. Class is often invisible, hard to describe and awkward to talk about. Anna Stansbury, an assistant professor at MIT’s Sloan School of Management, sought to shed light on class in the US in

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Episode Summary

Executive Summary: The episode examines the “class ceiling” in elite careers, focusing on a study of US PhD holders showing that social background still affects outcomes even after controlling for PhD field and institution. Anna Stansbury argues class shapes access to prestigious jobs, tenure, pay, and promotion in academia and the private sector, while government jobs appear more equal. The conversation also explores measurement, mechanisms, comparisons with race and gender, and practical DEI responses.

Main Topics: Defining class beyond income (Priority: 5/5): Stansbury explains class as family background encompassing parental education, wealth, occupations, and cultural capital—not just earnings. The discussion distinguishes class from income and stresses how it shapes opportunities throughout life. Methodology: isolating post-PhD outcomes (Priority: 5/5): The study uses NSF survey data on US PhD recipients since the early 1990s and compares people from different class backgrounds within the same PhD program and field to test whether class still predicts later career outcomes. Class ceiling in academia (Priority: 5/5): Findings show first-generation college graduates are less likely to become tenured professors at research-intensive institutions and are more likely to end up at less prestigious places, even after earning PhDs from the same program. Class gaps in the private sector versus government (Priority: 4/5): The class gap also appears in private-sector careers, widening over time in salary and managerial responsibility, while government and non-tenure-track education show little or no class gap on the measured outcomes. Why class may persist: bias, ease, and subjective judgments (Priority: 4/5): The conversation explores mechanisms including networking, mentorship, cultural ease in elite spaces, and subjective assessments of brilliance that may advantage people from more privileged backgrounds. Comparison with race and gender (Priority: 4/5): Class differs from gender and race in that it does not show a leaky pipeline in academia; instead, people from less advantaged backgrounds stay in the pipeline but end up in lower-status institutions. Race gaps look more similar to class gaps, though estimates are noisier. Policy and DEI implications (Priority: 4/5): Stansbury argues that class background should be included in existing diversity efforts through tracking, mentorship, and recruitment. She notes the UK has been somewhat further ahead than the US in collecting and acting on class data.

Key Arguments: Class background remains influential even after elite educational credentials, meaning a PhD does not erase social-origin disadvantages. The study’s within-program comparison strategy makes the findings especially striking because it holds constant field and PhD institution. The main class gap in academia is not mostly about dropping out; it is about where people land after completing the PhD. Evidence does not strongly support preferences, geography, or pay differentials as the main explanation for the class gap in academia. Private-sector careers also show a widening class gap over time, especially in salary and managerial advancement. Government and non-tenure-track education appear more standardized, which may reduce the space for class-based disparities. Class-based disadvantage may operate through “ease” in elite settings: networking, sponsorship, language, and behavior that feel more natural to those raised in privileged environments. Academia may be vulnerable to subjective judgments about brilliance and fit, which can be influenced by class-coded signals. DEI systems already used for race and gender could be extended to class with relatively low-friction changes such as tracking and mentorship. Economics has weak class representation at entry points, even if post-PhD outcomes are not worse than other fields once people are in the pipeline.

Data Points: US PhD sample coverage: Since about 1993 - NSF survey sample covers a representative group of people who received PhDs in the US from about 1993 onward. First-gen college grad gap in tenured research-intensive academia: 13% less likely - A first-generation college graduate is about 13% less likely to end up as a tenured professor at a research-intensive university than someone from a more advantaged background, conditional on the same PhD program. Time period analyzed for trend: 1999 to 2021 - The paper examines whether the class ceiling improved over time and finds no obvious improvement across this period. Class groupings used: 4 groups - Parental education is split into four categories: first-gen college grads, parent with college degree only, parent with graduate degree other than PhD, and parent with PhD. Fields compared: 3 broad areas - The authors compare physical sciences, biological sciences, and social sciences for broad subject-level patterns. Private sector outcome dimensions: 2 main measures - For private-sector PhD holders, the study looks at salary progression and whether people end up in managerial positions. Public sector outcome dimensions: 2 main measures - For government and non-tenure-track education, the study examines salary and managerial responsibility. Class gap in economics PhD entry: Lowest share among PhD fields - Stansbury notes economics has the lowest share of first-generation college graduates of any PhD field in the US, though that is about composition rather than post-PhD outcomes.

Pivotal Quotes: "Even a PhD isn't enough to erase the effects of class." — Samaya Keynes: Framing the episode’s central question about persistent class disadvantage after elite education. "We find that it does continue to matter, even if you get your PhD at the same program." — Anna Stansbury: Summarizing the paper’s main empirical finding that class background still predicts outcomes after controlling for PhD institution and field. "There are a lot of low-hanging fruit." — Anna Stansbury: On policy solutions, arguing that class can be incorporated into existing diversity and mentorship initiatives without requiring entirely new systems.

Implications: Elite credentials do not fully level the playing field. Organizations, universities, and policymakers should track class background alongside race and gender, and redesign mentoring, hiring, and promotion systems to reduce hidden advantages tied to social origin.

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About The Economics Show

The Economics Show with Soumaya Keynes is a new weekly podcast from the Financial Times packed full of smart, digestible analysis and incisive conversation. Soumaya Keynes digs deep into the hottest topics in economics along with a cast of FT colleagues and special guests. Come for the big ideas, stay for the nerdery.Soumaya Keynes is an economics columnist for the Financial Times. Prior to joining the FT she worked at The Economist for eight years as a staff writer, where as well as covering trade, the US economy and the UK economy she co-hosted the Money Talks podcast. She also co-founded the Trade Talks podcast. Hosted on Acast. See acast.com/privacy for more information.

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