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Up in STEM, Down in Business: Changing College Major Decisions with the Great Recession

Author

Listed:
  • Liu, Shimeng
  • Sun, Weizeng
  • Winters, John V.
Abstract
We use the American Community Survey (ACS) to investigate the extent to which college major decisions were affected during and after the Great Recession with special attention to business and STEM fields, as well as the heterogeneity by gender, race/ethnicity and combinations of race/ethnicity and gender. Several conclusions are reached. First, we see an overall increase in the frequency of STEM majors but a decrease in the frequency of business majors during and after the Great Recession. Second, the increase for STEM fields is spread across several detailed STEM fields, while the decrease in business majors is especially concentrated among finance and management. Third, we find strong heterogeneous effects by gender and race/ethnicity. Males are pushed away from business majors, while both males and females are pushed toward STEM majors; certain racial groups, such as white and Asian, seem to be affected more than others.

Suggested Citation

  • Liu, Shimeng & Sun, Weizeng & Winters, John V., 2017. "Up in STEM, Down in Business: Changing College Major Decisions with the Great Recession," GLO Discussion Paper Series 117, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:117
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    File URL: https://www.econstor.eu/bitstream/10419/168426/1/GLO-DP-0117.pdf
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    References listed on IDEAS

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    Cited by:

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    2. James C. Davis & Holden A. Diethorn & Gerald R. Marschke & Andrew J. Wang, 2021. "STEM Employment Resiliency During Recessions: Evidence from the COVID-19 Pandemic," NBER Working Papers 29568, National Bureau of Economic Research, Inc.
    3. Lisa Simon, 2018. "Shocking Choice: Trade Shocks, Local Labor Markets and Vocational Occupation Choices," ifo Working Paper Series 281, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Lisa Simon, 2019. "Microeconometric Analyses on Determinants of Individual Labour Market Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 83.
    5. Aalto, Aino-Maija & Müller, Dagmar & Tilley, J. Lucas, 2021. "From Epidemic to Pandemic: Did the COVID-19 Outbreak Affect High School Program Choices in Sweden?," Working Paper Series 1420, Research Institute of Industrial Economics.
    6. David, Sandberg, 2024. "The Effect of Military Base Closures on Young Adults," Working Papers 2024:9, Lund University, Department of Economics.
    7. Franziska Hampf & Marc Piopiunik & Simon Wiederhold, 2020. "The Effects of Graduating from High School in a Recession: College Investments, Skill Formation, and Labor-Market Outcomes," CESifo Working Paper Series 8252, CESifo.
    8. Zhou, Yonghong, 2023. "Influence of political movement on fields of study: Evidence from Hong Kong," European Journal of Political Economy, Elsevier, vol. 79(C).
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    More about this item

    Keywords

    Great Recession; College Major; Business; Finance; STEM;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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