IDEAS home Printed from https://ideas.repec.org/a/eee/labeco/v83y2023ics0927537123000805.html
   My bibliography  Save this article

Preference-choice mismatch and university dropout

Author

Listed:
  • Fouarge, Didier
  • Heß, Pascal

Abstract

Drawing on data from the German National Educational Panel Study (NEPS), we show that students who select majors that do not match their occupational preferences prior to enrolling in university are more likely to drop out than those who do choose majors that match their occupational preferences. Our findings suggest that this gap cannot be explained by institutional obstacles to entering a major. Instead, the primary mechanisms behind this phenomenon are indecisiveness and preference changes.

Suggested Citation

  • Fouarge, Didier & Heß, Pascal, 2023. "Preference-choice mismatch and university dropout," Labour Economics, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:labeco:v:83:y:2023:i:c:s0927537123000805
    DOI: 10.1016/j.labeco.2023.102405
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927537123000805
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.labeco.2023.102405?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gonzalo Castex, 2017. "College risk and return," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 26, pages 91-112, October.
    2. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    3. Ralph Stinebrickner & Todd Stinebrickner, 2014. "Academic Performance and College Dropout: Using Longitudinal Expectations Data to Estimate a Learning Model," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 601-644.
    4. Chevalier, Arnaud & Isphording, Ingo E. & Lisauskaite, Elena, 2020. "Peer diversity, college performance and educational choices," Labour Economics, Elsevier, vol. 64(C).
    5. Ernesto Reuben & Matthew Wiswall & Basit Zafar, 2017. "Preferences and Biases in Educational Choices and Labour Market Expectations: Shrinking the Black Box of Gender," Economic Journal, Royal Economic Society, vol. 127(604), pages 2153-2186, September.
    6. Todd Stinebrickner & Ralph Stinebrickner, 2012. "Learning about Academic Ability and the College Dropout Decision," Journal of Labor Economics, University of Chicago Press, vol. 30(4), pages 707-748.
    7. Erica Blom & Brian C. Cadena & Benjamin J. Keys, 2021. "Investment over the Business Cycle: Insights from College Major Choice," Journal of Labor Economics, University of Chicago Press, vol. 39(4), pages 1043-1082.
    8. Ralph Stinebrickner & Todd R. Stinebrickner, 2014. "A Major in Science? Initial Beliefs and Final Outcomes for College Major and Dropout," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 426-472.
    9. Neffke, Frank M.H. & Otto, Anne & Weyh, Antje, 2017. "Inter-industry labor flows," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 275-292.
    10. Esteban Aucejo & Jonathan James, 2021. "The Path to College Education: The Role of Math and Verbal Skills," Journal of Political Economy, University of Chicago Press, vol. 129(10), pages 2905-2946.
    11. Arulampalam, Wiji & Naylor, Robin A. & Smith, Jeremy P., 2005. "Effects of in-class variation and student rank on the probability of withdrawal: cross-section and time-series analysis for UK university students," Economics of Education Review, Elsevier, vol. 24(3), pages 251-262, June.
    12. Matthew Wiswall & Basit Zafar, 2018. "Preference for the Workplace, Investment in Human Capital, and Gender," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(1), pages 457-507.
    13. Amador-Hidalgo, Luis & Brañas-Garza, Pablo & Espín, Antonio M. & García-Muñoz, Teresa & Hernández-Román, Ana, 2021. "Cognitive abilities and risk-taking: Errors, not preferences," European Economic Review, Elsevier, vol. 134(C).
    14. Basit Zafar, 2013. "College Major Choice and the Gender Gap," Journal of Human Resources, University of Wisconsin Press, vol. 48(3), pages 545-595.
    15. Joniada Milla, 2017. "Updating higher education expectations and choices with learning," Education Economics, Taylor & Francis Journals, vol. 25(6), pages 640-658, November.
    16. Manski, Charles F., 1989. "Schooling as experimentation: a reappraisal of the postsecondary dropout phenomenon," Economics of Education Review, Elsevier, vol. 8(4), pages 305-312, August.
    17. Ernesto Reuben & Matthew Wiswall & Basit Zafar, 2017. "Preferences and Biases in Educational Choices and Labour Market Expectations: Shrinking the Black Box of Gender," Economic Journal, Royal Economic Society, vol. 127(604), pages 2153-2186, September.
    18. Zinn, Sabine & Würbach, Ariane & Steinhauer, Hans Walter, 2020. "Attrition and Selectivity of the NEPS Starting Cohorts: An Overview of the Past 8 Years," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14, pages 163-206.
    19. Sönke Hendrik Matthewes, 2020. "Better together? Heterogeneous effects of tracking on student achievement," CEP Discussion Papers dp1706.pdf, Centre for Economic Performance, LSE.
    20. Eric A. Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 607-668, September.
    21. Bordon, Paola & Fu, Chao, 2015. "College-Major Choice to College-Then-Major Choice," MPRA Paper 79643, University Library of Munich, Germany.
    22. Matthew Wiswall & Basit Zafar, 2015. "How Do College Students Respond to Public Information about Earnings?," Journal of Human Capital, University of Chicago Press, vol. 9(2), pages 117-169.
    23. Matthew Wiswall & Basit Zafar, 2015. "Determinants of College Major Choice: Identification using an Information Experiment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(2), pages 791-824.
    24. Paola Bordon & Chao Fu, 2015. "College-Major Choice to College-Then-Major Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(4), pages 1247-1288.
    25. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
    26. Sabine Zinn & Ariane Würbach & Hans Walter Steinhauer & Angelina Hammon, 2020. "Attrition and selectivity of the NEPS starting cohorts: an overview of the past 8 years [Ausfall und Selektivitäten in den NEPS Startkohorten: ein Überblick über die letzten 8 Jahre]," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 14(2), pages 163-206, July.
    27. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-474, June.
    28. Isphording, Ingo E. & Qendrai, Pamela, 2019. "Gender Differences in Student Dropout in STEM," IZA Research Reports 87, Institute of Labor Economics (IZA).
    29. Aina, Carmen & Baici, Eliana & Casalone, Giorgia & Pastore, Francesco, 2018. "The economics of university dropouts and delayed graduation: a survey," GLO Discussion Paper Series 189, Global Labor Organization (GLO).
    30. Aparajita Dasgupta & Anisha Sharma, 2022. "Preferences or expectations: understanding the gender gap in major choice [The demand for and return to education when education outcomes are Uncertain]," Oxford Economic Papers, Oxford University Press, vol. 74(4), pages 1167-1194.
    31. Aina, Carmen & Baici, Eliana & Casalone, Giorgia & Pastore, Francesco, 2022. "The determinants of university dropout: A review of the socio-economic literature," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    32. Ingvild Almås & Alexander W. Cappelen & Kjell G. Salvanes & Erik Ø. Sørensen & Bertil Tungodden, 2016. "What Explains the Gender Gap in College Track Dropout? Experimental and Administrative Evidence," American Economic Review, American Economic Association, vol. 106(5), pages 296-302, May.
    33. Riley K. Acton, 2021. "Community College Program Choices in the Wake of Local Job Losses," Journal of Labor Economics, University of Chicago Press, vol. 39(4), pages 1129-1154.
    34. Yona Rubinstein & James J. Heckman, 2001. "The Importance of Noncognitive Skills: Lessons from the GED Testing Program," American Economic Review, American Economic Association, vol. 91(2), pages 145-149, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arpita Patnaik & Matthew J. Wiswall & Basit Zafar, 2020. "College Majors," NBER Working Papers 27645, National Bureau of Economic Research, Inc.
    2. Yanqing Ding & Wei Li & Xin Li & Yinduo Wu & Jin Yang & Xiaoyang Ye, 2021. "Heterogeneous Major Preferences for Extrinsic Incentives: The Effects of Wage Information on the Gender Gap in STEM Major Choice," Research in Higher Education, Springer;Association for Institutional Research, vol. 62(8), pages 1113-1145, December.
    3. Kunz, Johannes S. & Staub, Kevin E., 2020. "Early subjective completion beliefs and the demand for post-secondary education," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 34-55.
    4. Johannes S. Kunz & Kevin E. Staub, 2016. "Subjective Completion Beliefs and the Demand for Post-Secondary Education," SOEPpapers on Multidisciplinary Panel Data Research 878, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Delfino, Alexia, 2021. "Breaking Gender Barriers: Experimental Evidence on Men in Pink-Collar Jobs," IZA Discussion Papers 14083, Institute of Labor Economics (IZA).
    6. Patnaik, Arpita & Venator, Joanna & Wiswall, Matthew & Zafar, Basit, 2022. "The role of heterogeneous risk preferences, discount rates, and earnings expectations in college major choice," Journal of Econometrics, Elsevier, vol. 231(1), pages 98-122.
    7. Kiessling, Lukas & Pinger, Pia & Seegers, Philipp & Bergerhoff, Jan, 2024. "Gender differences in wage expectations and negotiation," Labour Economics, Elsevier, vol. 87(C).
    8. Matthew Wiswall & Basit Zafar, 2018. "Preference for the Workplace, Investment in Human Capital, and Gender," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(1), pages 457-507.
    9. Matthew Wiswall & Basit Zafar, 2016. "Preference for the Workplace, Human Capital, and Gender," NBER Working Papers 22173, National Bureau of Economic Research, Inc.
    10. Philipp Lergetporer & Katharina Werner & Ludger Woessmann, 2021. "Does Ignorance of Economic Returns and Costs Explain the Educational Aspiration Gap? Representative Evidence from Adults and Adolescents," Economica, London School of Economics and Political Science, vol. 88(351), pages 624-670, July.
    11. Ma, Liping & Li, Xin & Zhu, Qiong & Ye, Xiaoyang, 2023. "College-major choice to college-then-major choice: Experimental evidence from Chinese college admissions reforms," Economics of Education Review, Elsevier, vol. 94(C).
    12. Bordón, Paola & Canals, Catalina & Mizala, Alejandra, 2020. "The gender gap in college major choice in Chile," Economics of Education Review, Elsevier, vol. 77(C).
    13. Delaney, Judith M. & Devereux, Paul J., 2021. "High School Rank in Math and English and the Gender Gap in STEM," Labour Economics, Elsevier, vol. 69(C).
    14. Pamela Giustinelli & Charles F. Manski, 2018. "Survey Measures Of Family Decision Processes For Econometric Analysis Of Schooling Decisions," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 81-99, January.
    15. Annalisa Loviglio, 2023. "School Quality Beyond Test Scores: the Role of Schools in Shaping Educational Outcomes," Working Papers wp1184, Dipartimento Scienze Economiche, Universita' di Bologna.
    16. Boneva, Teodora & Buser, Thomas & Falk, Armin & Kosse, Fabian, 2021. "The Origins of Gender Differences in Competitiveness and Earnings Expectations: Causal Evidence from a Mentoring Intervention," IZA Discussion Papers 14800, Institute of Labor Economics (IZA).
    17. Stephanie Briel & Aderonke Osikominu & Gregor Pfeifer & Mirjam Reutter & Sascha Satlukal, 2022. "Gender differences in wage expectations: the role of biased beliefs," Empirical Economics, Springer, vol. 62(1), pages 187-212, January.
    18. Yifan Gong & Todd Stinebrickner & Ralph Stinebrickner, 2020. "Perceived and actual option values of college enrollment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(7), pages 940-959, November.
    19. Elisabeth Grewenig & Philipp Lergetporer & Katharina Werner, 2020. "Gender Norms and Labor-Supply Expectations: Experimental Evidence from Adolescents," CESifo Working Paper Series 8611, CESifo.
    20. Devereux, Paul J. & Delaney, Judith, 2021. "Gender and Educational Achievement: Stylized Facts and Causal Evidence," CEPR Discussion Papers 15753, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Dropout; Preferences; Mismatch; Tertiary education;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:83:y:2023:i:c:s0927537123000805. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/labeco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.