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Information Heterogeneity and Intended College Enrollment
Report

Information Heterogeneity and Intended College Enrollment

Zachary Bleemer and Basit Zafar
Federal Reserve Bank of New York, 2014
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Editorial Rating

7

Qualities

  • Eye Opening
  • Overview

Recommendation

Most US households inaccurately perceive the costs and benefits of a college education, and that may be why college enrollment has stagnated. That’s the conclusion Fed economists Zachary Bleemer and Basit Zafar reach, albeit with caveats, in their leading-edge research. The authors make a valuable contribution by highlighting how individual assessments can have significant impacts on the broader economy. getAbstract recommends this scholarly report to educators, administrators and those concerned with reversing America’s educational lag.

Take-Aways

  • Almost one-third of students who graduate from US high schools choose not to attend college, and of those from families in the bottom 20% of earners, half don’t enroll.
  • A national survey reveals that almost three-quarters of US households inaccurately perceive the costs and benefits of a college education; they exaggerate the expenses while minimizing the “college premium” university graduates enjoy in income.
  • Just two-thirds of lower-income families are likely, on average, to have their children attend university, while 85% of those with more than $50,000 per year in income will probably send their kids to college.

About the Authors

Zachary Bleemer is a senior research analyst at the Federal Reserve Bank of New York, where Basit Zafar is a senior economist.

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