High school economics and postsecondary educational plans: An empirical study

Qualitative response models are used to investigate the economic subject areas that affect high school students' interest to study more economics and their liking of the subject. Using a probit model, it has been found that students' achievement in understanding economics, their desire for a basic economic literacy and a better understanding of other economic systems, their liking of economics, and their plans to attend college affect their interest to study more economics. Estimation of a simultaneous equations probit model of liking economics and achievement in its understanding has led to the conclusion that students' desire to better understand the American economy and other economic systems positively affect their enjoyment of economics. The helpfulness of economics to students in understanding the issues in the news and in using their time better has the same effect. Among the factors that positively affect the understanding of economics are student effort and general academic ability, teacher participation in in-service workshops, and school participation in the Developmental Economic Education Program.;Also, the effect of exposure to economics on high school students' post-secondary educational plans are studied using ordered probit and multinomial logit models. It is found that a student's understanding of economics and the helpfulness of economics in thinking about investing in more education positively affect the decision to attend a four-year college. It is also found that a student's understanding of economics positively affects the choice of economics and other social sciences as intended college major relative to not going to college. Conditional on going to college, the helpfulness of economics to a student in thinking about pros and cons of different kinds of jobs positively affects the choice of business and a social science as intended major area of study in college.