IDEAS home Printed from https://ideas.repec.org/a/taf/edecon/v20y2012i4p430-446.html
   My bibliography  Save this article

The ‘discouraged-business-major’ hypothesis: policy implications

Author

Listed:
  • John Marangos

Abstract

This paper uses a relatively large dataset of the stated academic major preferences of economics majors at a relatively large, not highly selective, public university in the USA to identify the ‘discouraged-business-majors’ (DBMs). The DBM hypothesis addresses the phenomenon where students who are screened out of the business curriculum often choose an economics major as their alternative. This paper explains how DBMs were identified as a subset of economics majors and then examines how the presence of DBMs affects the quality of students in the economics program. In addition, potential changes affecting the number of economics majors are investigated such as the economics department joining the business school, raising the minimum entry Grade Point Average (GPA), or raising calculus or introductory microeconomics course minimum grade requirements. The dataset was compiled from the transcripts of all economics majors who graduated between Spring 1999 and Spring 2005, that is 436 students over 19 terms. DBMs constituted 42% of economics majors and, on average, underperformed relative to non-DBMs academically. Of the policy changes considered, joining the business school would have the greatest impact, reducing the number of economics majors by 83%, but raising the average GPA of majors from 2.70 to 3.43. Requiring a B-- or greater in introductory microeconomics would reduce majors by 32.8% and raise the GPA from 2.70 to 2.82.

Suggested Citation

  • John Marangos, 2012. "The ‘discouraged-business-major’ hypothesis: policy implications," Education Economics, Taylor & Francis Journals, vol. 20(4), pages 430-446, September.
  • Handle: RePEc:taf:edecon:v:20:y:2012:i:4:p:430-446
    DOI: 10.1080/09645292.2010.511820
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09645292.2010.511820
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:edecon:v:20:y:2012:i:4:p:430-446. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/CEDE20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.