Information Avoidance in Education Investment

Loading...
Thumbnail Image
Degree type
Graduate group
Discipline
Subject
education investment
information avoidance
Business
Education
Funder
Grant number
License
Copyright date
Distributor
Related resources
Author
Yang, Jeffrey
Contributor
Abstract

Work in education economics has shown that college undergraduates are systematically misinformed about how their choice of major is likely to affect future earnings, even though information about the major-earnings relationship can be obtained at low cost. Information avoidance, a behavioral phenomenon in which an individual is averse to obtaining costless information, could explain this information gap among college undergraduates. We test for information avoidance in a lab experiment in which undergraduate subjects supply their willingness to pay for information about the major-earnings relationship. We find that a material amount of subjects are willing to pay to avoid the earnings information, and that the rate of information avoidance decreases with respect to the instrumental value of the information.

Advisor
Judd B. Kessler
Date of degree
2019-05-01
Date Range for Data Collection (Start Date)
Date Range for Data Collection (End Date)
Digital Object Identifier
Series name and number
Volume number
Issue number
Publisher
Publisher DOI
Journal Issue
Comments
Recommended citation