Rachel B. Baker
School of Education
University of California, Irvine
Irvine, CA 92697
NBER Working Papers and Publications
|April 2017||The Effect of Labor Market Information on Community College Students’ Major Choice|
with Eric Bettinger, Brian Jacob, Ioana Marinescu: w23333
An important goal of community colleges is to prepare students for the labor market. But are students aware of the labor market outcomes in different majors? And how much do students weigh labor market outcomes when choosing a major? In this study we find that less than 40% of a sample of community college students in California rank broad categories of majors accurately in terms of labor market outcomes. However, students believe that salaries are 13 percent higher than they actually are, on average, and students underestimate the probability of being employed by almost 25 percent. We find that the main determinants of major choice are beliefs about course enjoyment and grades, but expected labor market outcomes also matter. Experimental estimates of the impact of expected labor market ou...