RUI: Student Decisions and Outcomes in Higher Education

Berea College, Berea KY

Investigators

Abstract

Abstract PROPOSAL NO: 0350486 INSTITUTION: Berea College NSF PROGRAM: ECONOMICS P: Ralph Stinebrickner TITLE: RUI: Student Decisions and Outcomes in Higer Education There exists considerable interest in issues related to post-secondary education. This interest arises, in part, because there is a large disparity between the earnings of college graduates and the earnings of non-graduates. At the same time, it is well-known that a large amount of earnings variation exists even among individuals with the same level of educational attainment. The reality that variation in earnings between workers is both indicative of differences in productivity and central to the issue of income inequality highlights the importance of understanding how students make important decisions after entering college and how these decisions influence future labor market outcomes. While the importance of understanding issues related to higher education has been recognized, in practice many important questions and issues remain unresolved. The process by which students make decisions while in college is complex. Decisions about whether to leave school, how to allocate available time during school, and what college major to pursue are likely to be made jointly and to depend on the interaction of a large number of factors including a person's academic background and beliefs at the time of college entrance as well as what he learns about his/her ability and interests after arriving at school. As such, the data demands necessary to thoroughly investigate the decision-making process of college students are extremely high. The absence of currently available data that are detailed enough to permit the study of many fundamental issues has seriously constrained researchers who are attempting to provide a better understanding of the higher education process. This project involves the collection of a longitudinal survey of college students that is unequaled in its depth and detail and uses state-of-the-art analysis methods to investigate the decision-making processes of college students and the manner in which college decisions translate into future outcomes. The survey component of the project builds on recent advances in survey methodology. At the culmination of the project period, two cohorts of college students will have been surveyed approximately ten times each year from the date of college matriculation through their transitions to (at least) their first job or graduate-school position. The innovative survey collection efforts allow a strong interconnect between economic theory and the choice of econometric methods. The analysis component of the project will make methodological contributions of direct importance for researchers interested in estimating models that help policymakers understand human behavior. A wide range of new information will be of direct interest to policymakers who are currently faced with the task of designing effective policies with an incomplete understanding of many fundamental issues in higher education.