"(Un)informed College and Major Choice": Verification in an alternate setting. (August 2016)

• Record Type: Journal Article
• Authors: Huntington-Klein, Nick
• Is Part Of: Economics of education review. Volume 53(2016:Aug.)
• Page Start: 159
• Page End: 163
• Publication Date: 2016-08
• Subjects: Costs -- Demand for schooling -- Rate of return -- Information; D83 -- I23 -- I26; Education -- Economic aspects -- Periodicals; 370
• DOI: 10.1016/j.econedurev.2016.03.008
• Languages: English
• ISSNs: 0272-7757

Abstract

Highlights: I evaluate Hastings et al. model of costly information about college. I test predictions of the model using subjective expectations data from the United States. I find strong support for two predictions of the model, and weak support for another two. The costly information model likely has broad applications for the study of education. Abstract: In their recent paper "(Un)informed College and Major Choice: Evidence from Linked Survey and Administrative Data, " Hastings, Neilson, Ramirez, & Zimmerman (2016) provide an informal costly-information model, linking family background to students' beliefs about educational costs and benefits. They verify predictions of their model using a data set of beliefs about college institutions and majors among Chilean college applicants and students. I test some of those same predictions using a data set of beliefs about college institutions and different levels of college education among high school students in the United States. I verify their predictions, with some exceptions, supporting the use of their costly-search model.