Abstract

This paper provides causal evidence that the neighborhoods where students grow up play a significant role in shaping their college major choices, focusing on STEM fields. Using administrative data from Texas and variation in the timing of school moves across counties and districts, we estimate the impact of neighborhood exposure on the likelihood of pursuing a STEM major. We find that students who move to high-STEM neighborhoods—defined by the share of non-moving peers who earn STEM degrees—are increasingly likely to major in STEM with each additional year of exposure. We also show that neighborhood STEM exposure is strongly tied to the local occupational landscape, especially the concentration of residents working in STEM fields, with the highest-STEM areas clustered around major research and technology hubs. This suggests that exposure to local STEM careers is a key mechanism behind the observed effects. Mediation analysis further reveals that the effects operate primarily through behavioral pathways—specifically, increased enrollment in advanced science/math coursework—rather than improvements in academic performance. Importantly, the benefits of STEM-rich neighborhoods extend to underrepresented groups, including students from economically disadvantaged backgrounds, women, and racial minorities. These findings underscore the critical role of neighborhood environments in shaping educational pathways and highlight their importance in addressing educational inequality and strengthening the STEM pipeline.