Peer influence and IT career choice

Abstract

The productivity of the information technology (IT) industry depends on the supply of high-quality human capital, especially of managers who contribute to operational, finance, sales and marketing, and leadership roles. This study examines the influence of peers on the choice a management student makes to pursue a career in the IT industry. Such a choice may be informed and driven not only by the student’s own motivation and ability but also by information gained through peers. Specifically, we analyze data on student networks at a leading business school in India, where students are exogenously assigned to peer groups, and link these to students’ choices regarding postprogram careers in the IT industry. We find that being part of a group that includes peers who have worked in IT reduces the likelihood of receiving and accepting an offer in the IT industry. If a student has had no IT experience, however, having IT peers ameliorates this effect to a certain degree. We also find differential peer effects for male and female students. Our findings are consistent with the notion that IT peers provide (largely discouraging) information about the IT industry to non-IT peers.