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Applied Signaling: Graduate School Admissions and Frequency of STEM Majors

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Abstract

We offer a closer look at screening by graduate admissions committees in their selection of student applicants, and at applicants' strategic behavior given screening methods. Essentially, a signaling game takes place between student applicants seeking to signal ability and admissions committees seeking to inferability from proffered applications. In equilibrium, students' decisions to adopt a STEM or a non-STEM major reflect both their desire to imply high ability and the importance that admissions committees place on GPA. We find that, relative to GPA, admissions committees placing a higher weight on graduate entrance-exam scores leads to a higher fraction of students selecting STEM majors. Illustrations of the impact on the equilibrium fraction of STEM majors of grade inflation, and of alternative undergraduate grading systems, are also provided.

Suggested Citation

  • Ronald M. Harstad & Jordan Pandolfo, 2013. "Applied Signaling: Graduate School Admissions and Frequency of STEM Majors," Working Papers 1305, Department of Economics, University of Missouri.
    • Handle: RePEc:umc:wpaper:1305
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    1. Winship C. Fuller & Charles F. Manski & David A. Wise, 1982. "New Evidence on the Economic Determinants of Postsecondary Schooling Choices," Journal of Human Resources, University of Wisconsin Press, vol. 17(4), pages 477-498.
    2. Stephen L. DesJardins & Dennis A. Ahlburg & Brian P. McCall, 2006. "An Integrated Model of Application, Admission, Enrollment, and Financial Aid," The Journal of Higher Education, Taylor & Francis Journals, vol. 77(3), pages 381-429, May.
    3. Rumberger, Russell W. & Thomas, Scott L., 1993. "The economic returns to college major, quality and performance: A multilevel analysis of recent graduates," Economics of Education Review, Elsevier, vol. 12(1), pages 1-19, March.
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    More about this item

    Keywords

    graduate admissions; signaling games; inferring ability; STEM major choice;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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