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Can Social Information Affect What Job You Choose and Keep?

Author

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  • Lucas C. Coffman
  • Clayton R. Featherstone
  • Judd B. Kessler

Abstract

We show that the provision of social information influences a high-stakes decision and this influence persists over time. In a field experiment involving thousands of admits to Teach For America, those told about the previous year's matriculation rate are more likely to accept a teaching job, complete training, start, and return a second year. To show robustness, we develop a simple theory that identifies subgroups where we expect larger treatment effects and find our effect is larger in those subgroups. That social information can have a powerful, persistent effect on high-stakes behavior broadens its relevance for policy and theory.

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  • Lucas C. Coffman & Clayton R. Featherstone & Judd B. Kessler, 2017. "Can Social Information Affect What Job You Choose and Keep?," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 96-117, January.
  • Handle: RePEc:aea:aejapp:v:9:y:2017:i:1:p:96-117
    Note: DOI: 10.1257/app.20140468
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    Cited by:

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    6. Fragiadakis, Daniel E. & Troyan, Peter, 2019. "Designing mechanisms to focalize welfare-improving strategies," Games and Economic Behavior, Elsevier, vol. 114(C), pages 232-252.
    7. Zhu,Yu & Xu, Lei, 2022. "Returns to Higher Education - Graduate and Discipline Premiums," GLO Discussion Paper Series 1091, Global Labor Organization (GLO).
    8. Julien Senn & Jan Schmitz & Christian Zehnder, 2023. "Leveraging social comparisons: the role of peer assignment policies," ECON - Working Papers 427, Department of Economics - University of Zurich, revised Aug 2023.
    9. Ingar Haaland & Christopher Roth & Johannes Wohlfart, 2023. "Designing Information Provision Experiments," Journal of Economic Literature, American Economic Association, vol. 61(1), pages 3-40, March.
    10. Damgaard, Mette Trier & Nielsen, Helena Skyt, 2018. "Nudging in education," Economics of Education Review, Elsevier, vol. 64(C), pages 313-342.
    11. Wasserman, Melanie & Gallen, Yana, 2021. "Informed Choices: Gender Gaps in Career Advice," CEPR Discussion Papers 15728, C.E.P.R. Discussion Papers.
    12. Jones, Todd R. & Kofoed, Michael S., 2020. "Do peers influence occupational preferences? Evidence from randomly-assigned peer groups at West Point," Journal of Public Economics, Elsevier, vol. 184(C).
    13. Beshears, John & Kosowsky, Harry, 2020. "Nudging: Progress to date and future directions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 161(S), pages 3-19.
    14. Bellani, Luna & Biswas, Kumar & Fehrler, Sebastian & Marx, Paul & Sabarwal, Shwetlena & Al-Zayed Josh, Syed Rashed, 2023. "Social Norms and Female Labor Force Participation in Bangladesh: The Role of Social Expectations and Reference Networks," IZA Discussion Papers 16006, Institute of Labor Economics (IZA).
    15. Timo Goeschl & Sara Elisa Kettner & Johannes Lohse & Christiane Schwieren, 2018. "From Social Information to Social Norms: Evidence from Two Experiments on Donation Behaviour," Games, MDPI, vol. 9(4), pages 1-25, November.
    16. David Klinowski, 2021. "Reluctant donors and their reactions to social information," Experimental Economics, Springer;Economic Science Association, vol. 24(2), pages 515-535, June.
    17. Nicholls, Nicky, 2023. "Procrastination and grades: Can students be nudged towards better outcomes?," International Review of Economics Education, Elsevier, vol. 42(C).
    18. Laura K. Gee, 2019. "The More You Know: Information Effects on Job Application Rates in a Large Field Experiment," Management Science, INFORMS, vol. 67(5), pages 2077-2094, May.
    19. Monira Essa Aloud & Sara Al-Rashood & Ina Ganguli & Basit Zafar, 2020. "Information and Social Norms: Experimental Evidence on the Labor Market Aspirations of Saudi Women," NBER Working Papers 26693, National Bureau of Economic Research, Inc.
    20. Kessler, Judd B. & Low, Corinne & Singhal, Monica, 2021. "Social policy instruments and the compliance environment," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 248-267.
    21. Coffman, Lucas C. & Conlon, John J. & Featherstone, Clayton R. & Kessler, Judd B. & Mixon, Jessica, 2023. "Liquidity for teachers: Evidence from Teach For America and LinkedIn," Economics of Education Review, Elsevier, vol. 97(C).

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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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