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The Impact of Grades on College Majo...

Wang, Ray Li.

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The Impact of Grades on College Major Choice, Dropout, and Labor Outcomes.

Record Type:	Electronic resources : Monograph/item
Title/Author:	The Impact of Grades on College Major Choice, Dropout, and Labor Outcomes./
Author:	Wang, Ray Li.
Published:	Ann Arbor : ProQuest Dissertations & Theses, : 2020,
Description:	92 p.
Notes:	Source: Dissertations Abstracts International, Volume: 82-01, Section: A.
Contained By:	Dissertations Abstracts International82-01A.
Subject:	Economics. -
Online resource:	https://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=27956646
ISBN:	9798617073616

The Impact of Grades on College Major Choice, Dropout, and Labor Outcomes.
Wang, Ray Li.

The Impact of Grades on College Major Choice, Dropout, and Labor Outcomes. - Ann Arbor : ProQuest Dissertations & Theses, 2020 - 92 p.

Source: Dissertations Abstracts International, Volume: 82-01, Section: A.

Thesis (Ph.D.)--The University of North Carolina at Chapel Hill, 2020.

This item must not be sold to any third party vendors.

I develop a dynamic model of education and labor supply decisions that seeks to explain student demand elasiticities to the grading standards in their courses, and the high rate of dropout from STEM majors. The positive correlation in the data between wages and terminal GPA suggests that firms offer a wage premium to students with higher grades, even after controlling for major. College students consider these returns to grades when making education decisions: dropout or major switching can be induced by grade shocks. I estimate a structural model using the NLSY97, and find that a difference in grades by 1.0 GPA points can impact the net present value of a college degree by as much as 20 percent at the time of graduation. If STEM and non-STEM course grading standards were adjusted to be in line with each other, there would be a 4.7 percent increase in the total number of STEM major graduates, a comparable effect to a $2,200 STEM tuition subsidy. Finally, a key observation of the model is that due to imperfect sorting across majors and occupations, large changes in the number of STEM degrees translate into smaller changes in the number of STEM workers.

ISBN: 9798617073616Subjects--Topical Terms:

517137
Economics.
Subjects--Index Terms:

Economics of Education

The Impact of Grades on College Major Choice, Dropout, and Labor Outcomes.
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500 $a Source: Dissertations Abstracts International, Volume: 82-01, Section: A.
500 $a Advisor: Flabbi, Luca.
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506 $a This item must not be sold to any third party vendors.
520 $a I develop a dynamic model of education and labor supply decisions that seeks to explain student demand elasiticities to the grading standards in their courses, and the high rate of dropout from STEM majors. The positive correlation in the data between wages and terminal GPA suggests that firms offer a wage premium to students with higher grades, even after controlling for major. College students consider these returns to grades when making education decisions: dropout or major switching can be induced by grade shocks. I estimate a structural model using the NLSY97, and find that a difference in grades by 1.0 GPA points can impact the net present value of a college degree by as much as 20 percent at the time of graduation. If STEM and non-STEM course grading standards were adjusted to be in line with each other, there would be a 4.7 percent increase in the total number of STEM major graduates, a comparable effect to a $2,200 STEM tuition subsidy. Finally, a key observation of the model is that due to imperfect sorting across majors and occupations, large changes in the number of STEM degrees translate into smaller changes in the number of STEM workers.
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