class: center, middle, inverse, title-slide # Biased Beliefs and the Dynamic Role of Information<br/>in College Choice ## Magdalena Bennett          Claudia Allende ### The University of Texas at Austin           Stanford University       ### <br/>AEFP #EdDev Group<br/>February 25, 2022 --- <style type="text/css"> .small .remark-code { /*Change made here*/ font-size: 80% !important; } .tiny .remark-code { /*Change made here*/ font-size: 90% !important; } </style> # Motivation - **.darkorange[Information frictions]** affect optimal human capital investment decisions -- .box-3trans[What major to study?] -- .box-6trans[Should I go to grad school or not?] -- .box-7trans[Enroll in that training program?] -- - Most interventions target **.darkorange[static component]** - Choice set is <u>fixed</u> --- .center2[ .box-6Trans[Dynamic component?] ] --- # This Study - **.darkorange[Research Question:]** How do information frictions affect students with respect to higher education decisions (dynamic vs static role). - Investment in test preparation - Choices in major-institution enrollment -- - **.darkorange[Setting:]** Chilean centralized higher education system - Students apply with an admission score and get selected through a DA mechanism. -- - **.darkorange[Population:]** Students that took the admission tests in late 2021 but *did not* enroll in higher ed. -- - Partnering with **.darkorange[Ministry of Education]** and **.darkorange[ConsiliumBots]**. --- # This Study - **.darkorange[3-arm RCT]** with personalized information delivered via email and Whatsapp. - Dynamic group: Early provision of personalized information (April) - Static group: Provision of personalized information after the admission test but before applying (December) - Control group: General information. -- - **.darkorange[Baseline survey]** to capture preferences and additional information. - **.darkorange[Follow-up surveys]** to capture test preparation throughout the year. - **.darkorange[Administrative data]** from the Ministry of Education. --- # Intervention: Dynamic Group .pull-left[ .center[ ] ] .pull-right[ **.darkorange[Personalized information]** including: - Previous scores - Preferences (if applied + survey) - Preparation material - Financial Aid information - Relevant dates ] --- # Intervention: Dynamic Group .pull-left[ .center[ ] ] .pull-right[ - List of major-institutions by cutoff score according to area of interest. - Information about cutoff scores and how much they need to improve to achieve it. <br> <br> <br> *Note: These are not the actual pamphlets that are going out* ] --- # Intervention: Dynamic Group .pull-left[ .center[ ] ] .pull-right[ - List of major-institutions by cutoff score according to area of interest. - Information about cutoff scores and how much they need to improve to achieve it. <br> <br> <br> *Note: These are not the actual pamphlets that are going out* ] --- # Intervention: Dynamic Group .pull-left[ .center[ ] ] .pull-right[ .center[ ] ] --- # Intervention: Dynamic Group .pull-left[ .center[ ] ] .pull-right[ - Additional information about financial aid - (Potentially) adds information about technical schools ] --- # Intervention: Static Group and Control .pull-left[ .center[ ] ] .pull-right[ - Sent after admission test is completed and before applications. - Similar to dynamic group, but no nudge about increasing scores. - Control group receives general information. ] --- # Study Population - Students that took all the required tests but **.darkorange[did not enroll in higher education]** (over 80,000 students). -- - Heterogeneous group: Different reasons for not enrolling. -- - Test score differences, but **.darkorange[not the whole story]** --- # Test Score Distributions .pull-left[  ] .pull-right[  ] --- # Reasons for Not Enrolling? .center[ ] --- # Score Gap by Reasons for Not Enrolling .center[ ] --- # Information about Financial Aid is a Relevant Issue .pull-left[  ] .pull-right[  ] --- # ... And Students Don't Seem to Know Much About It. .pull-left[  ] .pull-right[ - Most students *think* they are eligible for Free Higher Education, but most are very unsure. - High uncertainty (or incongruity) on how to finance higher education. ] --- # Next Steps - Currently designing brochure for intervention - Baseline survey out in March + Early intervention in April -- - Important component is **.darkorange[general equilibrium effects]** - How would this intervention scale up? --- background-position: 50% 50% class: center,middle, inverse #Biased Beliefs and the Dynamic Role of Information<br>in College Choice ###Magdalena Bennett - Claudia Allende