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Foreign Peer Effects and STEM Major Choice
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Foreign Peer Effects and STEM Major Choice

Author

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  • Anelli, Massimo

    (Bocconi University)

  • Shih, Kevin Y.

    (University of California, Riverside)

  • Williams, Kevin

    (University of Utah)

Abstract

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

Suggested Citation

  • Anelli, Massimo & Shih, Kevin Y. & Williams, Kevin, 2017. "Foreign Peer Effects and STEM Major Choice," IZA Discussion Papers 10743, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10743
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    Cited by:

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    2. Judith M. Delaney & Paul J. Devereux, 2019. "It’s not just for boys! Understanding Gender Differences in STEM," Working Papers 201905, School of Economics, University College Dublin.
    3. Russell Weinstein, 2022. "Local Labor Markets and Human Capital Investments," Journal of Human Resources, University of Wisconsin Press, vol. 57(5), pages 1498-1525.
    4. Amuedo-Dorantes, Catalina & Furtado, Delia & Xu, Huanan, 2019. "OPT policy changes and foreign born STEM talent in the U.S," Labour Economics, Elsevier, vol. 61(C).
    5. Frattini, Tommaso & Meschi, Elena, 2019. "The effect of immigrant peers in vocational schools," European Economic Review, Elsevier, vol. 113(C), pages 1-22.
    6. Insler, Michael & Rahman, Ahmed S. & Smith, Katherine, 2021. "Tracking the Herd with a Shotgun — Why Do Peers Influence College Major Selection?," IZA Discussion Papers 14412, Institute of Labor Economics (IZA).
    7. Delaney, Judith M. & Devereux, Paul J., 2019. "Understanding gender differences in STEM: Evidence from college applications✰," Economics of Education Review, Elsevier, vol. 72(C), pages 219-238.
    8. Bächli, Mirjam & Tsankova, Teodora, 2020. "Free Movement of Workers and Native Demand for Tertiary Education," Other publications TiSEM 33968781-3521-459e-86c9-f, Tilburg University, School of Economics and Management.
    9. Patrick S. Turner, 2022. "High‐Skilled Immigration and the Labor Market: Evidence from the H‐1B Visa Program," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(1), pages 92-130, January.
    10. Murat Demirci, 2020. "International students and labour market outcomes of US‐born workers," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1495-1522, November.
    11. Bachli, Mirjam & Tsankova, Teodora, 2020. "Free movement of workers and native demand for tertiary education," CAGE Online Working Paper Series 515, Competitive Advantage in the Global Economy (CAGE).
    12. Friedman-Sokuler, Naomi & Senik, Claudia, 2020. "From Pink-Collar to Lab Coat: Cultural Persistence and Diffusion of Socialist Gender Norms," IZA Discussion Papers 13385, Institute of Labor Economics (IZA).
    13. Shih, Kevin, 2017. "Do international students crowd-out or cross-subsidize Americans in higher education?," Journal of Public Economics, Elsevier, vol. 156(C), pages 170-184.
    14. Chevalier, Arnaud & Isphording, Ingo E. & Lisauskaite, Elena, 2020. "Peer diversity, college performance and educational choices," Labour Economics, Elsevier, vol. 64(C).
    15. John Bound & Breno Braga & Gaurav Khanna & Sarah Turner, 2021. "The Globalization of Postsecondary Education: The Role of International Students in the US Higher Education System," Journal of Economic Perspectives, American Economic Association, vol. 35(1), pages 163-184, Winter.
    16. Diyi Li & Cheng Qian & Cory Koedel, 2020. "Nonresident Postsecondary Enrollment Growth And The Outcomes Of In‐State Students," Contemporary Economic Policy, Western Economic Association International, vol. 38(4), pages 736-757, October.
    17. Pregaldini, Damiano & Balestra, Simone & Backes-Gellner, Uschi, 2022. "Does Ethnic Diversity in Schools Affect Occupational Choices?," IZA Discussion Papers 15780, Institute of Labor Economics (IZA).
    18. Catalina Amuedo‐Dorantes & Kevin Shih & Huanan Xu, 2023. "The implications of optional practical training reforms on international student enrollments and quality," Economic Inquiry, Western Economic Association International, vol. 61(2), pages 253-281, April.
    19. Bächli, Mirjam & Teodora Tsankova, 2020. "Free Movement of Workers and Native Demand for Tertiary Education," Economics Working Paper Series 2019, University of St. Gallen, School of Economics and Political Science.
    20. Devereux, Paul J. & Delaney, Judith, 2019. "Understanding Gender Differences in STEM: Evidence from College Applications," CEPR Discussion Papers 13558, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    immigration; peer effects; higher education; college major; STEM;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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