This article studies the determinants of college major choice using an experimentally generated panel of beliefs, obtained by providing students with information on the true population distribution of various major-specific characteristics. Students logically revise their beliefs in response to the information, and their subjective beliefs about future major choice are associated with beliefs about their own earnings and ability. We estimate a rich model of college major choice using the panel of beliefs data. While expected earnings and perceived ability are a significant determinant of major choice, heterogeneous tastes are the dominant factor in the choice of major. Analyses that ignore the correlation in tastes with earnings expectations inflate the role of earnings in college major choices. We conclude by computing the welfare gains from the information experiment and find positive average welfare gains.

The growth in labour market participation among women with young children has raised concerns about its implications for child cognitive development. We estimate a model of the cognitive development process of children nested within an otherwise standard model of household behaviour. The household makes labour supply decisions and provides time and money inputs into the child quality production process during the development period. Our empirical results indicate that both parents' time inputs are important for the cognitive development of their children, particularly when the child is young. Money expenditures are less productive in terms of producing child quality. Comparative statics exercises demonstrate that cash transfers to households with children have small impacts on child quality due to the relatively low impact of money investments on child outcomes and the fact that a significant fraction of the transfer is spent on other household consumption and the leisure of the parents.