Foreign Peer Effects and Stem Major Choice

• DOI: 10.2139/ssrn.2964132
• Publication Date: 2021-11-17T14:48:24Z
• Authors: Massimo Anelli; Kevin Yang Shih; Kevin Williams
• Keywords: I28; peer effects; ddc:330; J21; I23; 05 social sciences; J24; STEM; higher education; 0502 economics and business; college major; I21; immigration

Since the 1980s United States has faced growing disinterest and high attrition from STEM majors. Over same period, foreign-born enrollment in U.S. higher education increased steadily. This paper examines whether peers affect likelihood American college students graduate with a major. Using administrative student records large public university California, we exploit idiosyncratic variation share of foreign across introductory math courses taught by professor over time. Results indicate that 1 standard deviation increase reduces native-born majors 3 percentage points – equivalent to 3.7 native displaced for 9 additional an average course. displacement is offset choosing Social Science However, earnings prospects are minimally affected as they appear be equally earning power. We demonstrate comparative advantage linguistic dissonance may operate underlying mechanisms.