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Academic Performance and College Dropout: Using Longitudinal Expectations Data to Estimate a Learning Model

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Abstract

We estimate a dynamic learning model of college dropout, taking advantage of unique expectations data to greatly reduce our reliance on standard assumptions. Our simulations show that forty-five percent of dropout in the first two years of college can be attributed to what students learn about their academic performance, with this type of learning playing a smaller role later in college. Poorly performing students tend to leave because staying is not worthwhile, rather than because they are at risk of failing out of school. Poor performance substantially decreases the enjoyability of school and substantially influences beliefs about post-college earnings.

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File URL: http://economics.uwo.ca/cibc/workingpapers_docs/wp2013/Stinebrickner_Stinebrickner05.pdf
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Bibliographic Info

Paper provided by University of Western Ontario, CIBC Centre for Human Capital and Productivity in its series University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers with number 20135.

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Date of creation: 2013
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Handle: RePEc:uwo:hcuwoc:20135

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Postal: CIBC Centre for Human Capital and Productivity, Social Science Centre, University of Western Ontario, London, Ontario, Canada N6A 5C2
Phone: 519-661-2111 Ext.85244
Web page: http://economics.uwo.ca/research/research_papers/cibc_workingpapers.html

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  1. John Bound & Todd Stinebrickner & Timothy Waidmann, 2007. "Health, Economic Resources and the Work Decisions of Older Men," University of Western Ontario, Economic Policy Research Institute Working Papers 20076, University of Western Ontario, Economic Policy Research Institute.
  2. Todd R. Stinebrickner & Ralph Stinebrickner, 2000. "Working During School and Academic Performance," UWO Department of Economics Working Papers 20009, University of Western Ontario, Department of Economics.
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  13. Ralph Stinebrickner & Todd R. Stinebrickner, 2014. "A Major in Science? Initial Beliefs and Final Outcomes for College Major and Dropout," Review of Economic Studies, Oxford University Press, vol. 81(1), pages 426-472.
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  22. Ralph Stinebrickner & Todd Stinebrickner, 2008. "The Effect of Credit Constraints on the College Drop-Out Decision: A Direct Approach Using a New Panel Study," American Economic Review, American Economic Association, vol. 98(5), pages 2163-84, December.
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Cited by:
  1. Jonathan A. Schwabish, 2014. "An Economist's Guide to Visualizing Data," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 209-34, Winter.

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