Where DESO Disappears: Spatial Inequality and Social Stratification at Labour Market Entry

Abstract

Abstract At country-level, a host of evidence suggests there is a sizeable direct effect of social origin (DESO) on initial labour market outcomes, net of educational attainment. What is true at country-level is not always true below country-level, however. Using data from the UK Household Longitudinal Survey and the German Socio-Economic Panel, we show that variable spatial opportunity structures moderate the size of DESO at labour market entry, such that there are places where DESO disappears. Social origins assume greater importance as local labour market conditions deteriorate: in weak local labour markets, non-graduates are approximately 16 percentage points less likely to find employment if their parents are care workers rather than secondary school teachers, while graduates typically obtain first jobs that are 7–9 ISEI points lower in status. These findings highlight the distinctive geography of social stratification processes at labour market entry and potentially beyond.