Investment over the Business Cycle: Insights from College Major Choice

• 成果类型: Article
• 署名作者: Blom, Erica; Cadena, Brian C.; Keys, Benjamin J.
• 署名单位: Urban Institute; University of Colorado System; University of Colorado Boulder; University of Pennsylvania
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/712611
• 发表日期: 2021
• 页码: 1043-1082
• 关键词: labor-market conditions; GENDER; school; field; outcomes; women; stem; fluctuations; INFORMATION; cyclicality

摘要

How does personal exposure to economic conditions affect individual human capital investment choices? Focusing on bachelor's degree recipients, we find that cohorts exposed to higher unemployment rates during typical schooling years select majors that earn higher wages, have better employment prospects, and lead to work in a related field. Conditional on expected earnings, recessions also encourage women to enter male-dominated fields, and students of both genders pursue more difficult majors. We conclude that economic environments change how students select majors, and we find evidence that students who respond to the business cycle enjoy earnings typical of their new majors.