The Effects of Earnings Disclosure on College Enrollment Decisions
We use a large-scale survey and field experiment to evaluate a policy that provided information about earnings and costs to college applicants in Chile. The intervention was administered by the Chilean government and reached 30% of student loan applicants. Students overestimate post-graduation earnings outcomes at low-earning college degree programs but have reasonably accurate beliefs about tuition. Disclosure of earnings outcomes for past graduates reduces demand for degrees in the bottom tercile of the expected labor market return distribution by 3.3%. Effects are concentrated among low-SES and low-scoring students. Effect size is limited by strong preferences for non-earnings degree attributes.
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Document Object Identifier (DOI): 10.3386/w21300
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