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Journal of Labor Economics Vol. 30 No. 4 2012

Learning about Academic Ability and the College Dropout Decision

Todd Stinebrickner1; Ralph Stinebrickner2

1 Western University · 2 Berea College

open access

Abstract

Research examining the educational attainment of low-income students has often focused on financial factors such as credit constraints. We use unique longitudinal data to provide direct evidence about a prominent alternative explanation—that departures from school arise as students learn about their academic ability or grade performance. Examining college dropout, we find that this explanation plays a very prominent role; our simulations indicate that dropout between the first and second years would be reduced by 40% if no learning occurred about grade performance/academic ability. The article also contributes directly to the understanding of gender differences in educational attainment.

DOI
10.1086/666525
Volume
30
Issue
4
Pages
707-748
Language
en
Sources
openalex crossref

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