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ERIC Number: ED508547
Record Type: Non-Journal
Publication Date: 2010-Feb
Pages: 0
Abstractor: As Provided
Reference Count: 0
ISBN: N/A
ISSN: N/A
Modeling College Major Choices using Elicited Measures of Expectations and Counterfactuals. NBER Working Paper No. 15729
Arcidiacono, Peter; Hotz, V. Joseph; Kang, Songman
National Bureau of Economic Research
The choice of a college major plays a critical role in determining the future earnings of college graduates. Students make their college major decisions in part due to the future earnings streams associated with the different majors. We survey students about what their expected earnings would be both in the major they have chosen and in counterfactual majors. We also elicit students' subjective assessments of their abilities in chosen and counterfactual majors. We estimate a model of college major choice that incorporates these subjective expectations and assessments. We show that both expected earnings and students' abilities in the different majors are important determinants of student's choice of a college major. We also show that students' forecast errors with respect to expected earnings in different majors is potentially important, with our estimates suggesting that 7.5% of students would switch majors if they made no forecast errors.
National Bureau of Economic Research. 1050 Massachusetts Avenue, Cambridge, MA 02138-5398. Tel: 617-588-0343; Web site: http://www.nber.org
Publication Type: Reports - Evaluative
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: National Bureau of Economic Research