Journal of Labor Economics Vol. 29 No. 2 2011
How Do College Students Form Expectations?
Abstract
This study focuses on how college students form expectations about various major-specific outcomes. For this purpose, I collect a panel data set of Northwestern University undergraduates that contains their subjective expectations about major-specific outcomes. Although students tend to be overconfident about their future academic performance, they revise their expectations in expected ways. The updating process is found to be consistent with a Bayesian learning model. I show that learning plays a role in the decision to switch majors and that major switchers respond to information from their own major. I also present evidence that learning is general and not entirely major specific.
- DOI
- 10.1086/658091
- Volume
- 29
- Issue
- 2
- Pages
- 301-348
- Language
- en
- Sources
- openalex crossref