In this paper we investigate whether peers’ behavior influences the choice of college major.
Using a unique dataset of students at Bocconi University and exploiting the peculiar organization
of teaching at this institution, we are able to identify the endogenous effect of peers
on such decision, circumventing the crucial identification problems in studies of social interactions.
Results show that, indeed, one is more likely to choose a major when many of his/her
peers make the same choice. We estimate that, when it diverts students from majors in which
they seem to have a relative ability advantage, this effect leads to lower average grades and
graduation mark, a penalty that in the labor market could cost up to 871 euros (1,117 USD)
a year.
Presented by:
Michele Pellizzari (University of Bocconi)
Date & time:
March 5, 2007 4:00 pm - March 5, 2007 12:00 am
External seminars home