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Forming wage expectations through learning: Evidence from college major choices

Listed author(s):
  • Xia, Xiaoyu
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    How do college students choose their majors, and what role does the family play in their choices? I use data from two major longitudinal surveys to develop and estimate a model in which students learn about earning opportunities associated with different majors through the wages of older siblings and parents. The probability of a student choosing a major that corresponds to the occupation of a family member is strongly correlated with the family member's wage at the time the major choice is made. This correlation remains strong after controlling for family-correlated abilities or preferences, and additional empirical evidence suggests that the observed correlation arises through a family-based wage information channel.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0167268116302426
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    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 132 (2016)
    Issue (Month): PA ()
    Pages: 176-196

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    Handle: RePEc:eee:jeborg:v:132:y:2016:i:pa:p:176-196
    DOI: 10.1016/j.jebo.2016.10.013
    Contact details of provider: Web page: http://www.elsevier.com/locate/jebo

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