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Title: Forming Wage Expectations through Learning: Evidence from College Major Choices
Resulting in 1 citation.
1. Xia, Xiaoyu
Forming Wage Expectations through Learning: Evidence from College Major Choices
Journal of Economic Behavior and Organization 132,A (December 2016): 176-196.
Also: http://www.sciencedirect.com/science/article/pii/S0167268116302426
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): College Major/Field of Study/Courses; Learning Hypothesis; Occupations; Siblings; Wages

How do college students choose their majors, and what role does the family play in their choices? I use data from two major longitudinal surveys to develop and estimate a model in which students learn about earning opportunities associated with different majors through the wages of older siblings and parents. The probability of a student choosing a major that corresponds to the occupation of a family member is strongly correlated with the family member's wage at the time the major choice is made. This correlation remains strong after controlling for family-correlated abilities or preferences, and additional empirical evidence suggests that the observed correlation arises through a family-based wage information channel.
Bibliography Citation
Xia, Xiaoyu. "Forming Wage Expectations through Learning: Evidence from College Major Choices." Journal of Economic Behavior and Organization 132,A (December 2016): 176-196.