Social origin, the class ceiling in earnings, and job task segregation: Evidence from Germany

Abstract

Social class origin is closely linked to individuals' labor market outcomes. This study examines the class ceiling—the earnings disadvantage that those from lower-class origins experience within higher-class occupations. We propose that job task segregation, i.e., the non-random selection into different task profiles within granular occupations, contributes to the class ceiling. We study these dynamics in Germany, characterized by rigid social structures and low social mobility. Using high-quality survey data with individual measures of job tasks (National Educational Panel Study Adult Cohort), we estimate Poisson pseudo-maximum likelihood (PPML) regression with a log link. Class origin effects on earnings are most pronounced in higher salariat positions, where individuals from privileged origins earn substantially more than their lower-origin counterparts, even within the same occupations. Job tasks differentials by social origin are visible; those from an advantaged background perform more analytical and creative job tasks, even within the same occupations. These differentials explain a small part of the earnings gap by class origin. The findings contribute to understanding the intergenerational transmission of advantage, particularly how class origin shapes outcomes within occupations.