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Title: College Attrition and the Dynamics of Information Revelation
Resulting in 1 citation.
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Arcidiacono, Peter Aucejo, Esteban M. Maurel, Arnaud Ransom, Tyler |
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College Attrition and the Dynamics of Information Revelation NBER Working Paper No. 22325, National Bureau of Economic Research, June 2016. Also: http://www.nber.org/papers/w22325 Cohort(s): NLSY97 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Armed Services Vocational Aptitude Battery (ASVAB); Attrition; College Enrollment; College Graduates; College Major/Field of Study/Courses; Grade Point Average (GPA)/Grades; Test Scores/Test theory/IRT; Wages This paper investigates the role played by informational frictions in college and the workplace. We estimate a dynamic structural model of schooling and work decisions, where individuals have imperfect information about their schooling ability and labor market productivity. We take into account the heterogeneity in schooling investments by distinguishing between two- and four-year colleges, graduate school, as well as science and non-science majors for four-year colleges. Individuals may also choose whether to work full-time, part-time, or not at all. A key feature of our approach is to account for correlated learning through college grades and wages, whereby individuals may leave or re-enter college as a result of the arrival of new information on their ability and productivity. Our findings indicate that the elimination of informational frictions would increase the college graduation rate by 9 percentage points, and would increase the college wage premium by 32.7 percentage points through increased sorting on ability. |
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Bibliography Citation
Arcidiacono, Peter, Esteban M. Aucejo, Arnaud Maurel and Tyler Ransom. "College Attrition and the Dynamics of Information Revelation." NBER Working Paper No. 22325, National Bureau of Economic Research, June 2016. |