Nearly a third of high school graduates in the US do not enroll in college. In fact, for children whose households are in the lowest quintile of the US income distribution, nearly half of high school graduates do not enroll in college. Given the robust and high return associated with a college degree, as well as college tuition subsidies for lower-income households, these patterns continue to puzzle researchers and policy-makers alike. This paper focuses on information constraints as one possible explanation for these patterns.
We report results from two randomized information experiments. In the first, respondents are informed that college-educated workers'annual earnings are 80 percent higher than those of non-college workers (see Jensen, 2010, and Nguyen, 2008, for international examples). In the second experiment, respondents are informed that the average annual net costs of public and non-profit private universities in the US are $12,620 and $23,290, respectively (among examples of cost-based interventions conducted in the US are Carroll and Sacerdote, 2012, and Hoxby and Turner, 2013). We elicit respondents' beliefs regarding their (own and/or friend's child's) college attendance and other related outcomes, before and immediately after the information intervention, as well as two months later.
Econintersect wants your comments,
data and opinion on the articles posted. As the internet is a
"war zone" of trolls, hackers and spammers - Econintersect must balance its
defences against ease of commenting. We have joined with Livefyre
to manage our comment streams.
To comment, using Livefyre just click the "Sign In" button at the top-left corner of
the comment box below. You can create a commenting account using your
favorite social network such as Twitter, Facebook, Google+, LinkedIn or
Open ID - or open a Livefyre account using your email address.
You can also comment using Facebook directly using he comment block below.
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com