TY - RPRT AU - Batistich, Mary Kate AU - Bond, Timothy N. AU - Linde, Sebastian AU - Mumford, Kevin J. TI - Statistical Discrimination and Optimal Mismatch in College Major Selection PY - 2024/Aug/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 17237 UR - https://www.iza.org/index.php/publications/dp17237 AB - We develop a model of college major selection in an environment where firms and students have incomplete information about the student's aptitude. Students must choose from a continuum of majors which differ in their human capital production function and can act as a signal to the market. Whether black students choose more or less difficult majors than similar white students, and whether they receive a higher or lower return to major difficulty, depends on the extent to which employers statistically discriminate. We find strong evidence that statistical discrimination influences major choice using administrative data from several large universities and two nationally representative surveys. KW - mismatch KW - affirmative action KW - statistical discrimination ER -