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The Discouraged-Business-Major Hypothesis Revisited: Could Economics be the Encouraged-Business-Major?

The term “Discouraged-Business-Major” (DBM) describes students who become discouraged with the rigorous standards of colleges of business and migrate to colleges of arts and sciences to complete a degree in economics under relaxed requirements (Salemi and Eubanks 1996). Following Salemi and Eubanks, the authors examine a decade of demographic characteristics and ability measures for every economics and business graduate at a large Midwestern university. They find DBMs, but also note that major selection dynamics are much more complex than originally expected. Finally, they employ a multinomial logit model to estimate the marginal effects of student characteristics on major choice.

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	Asarta, Carlos J Associate Professor of Practice Expertise: Economic Education International Economics International Trade & Finance Economics CBA 355 P.O. Box 880489 University of Nebraska-Lincoln Lincoln, NE 68588-0489, USA Phone: (402) 472-3003 Fax: (402) 472-9700 asarta@unl.edu	Asarta, Carlos J	Economics
	Butters, Roger B President, Nebraska Council on Economic Education Expertise: Economic Education International Trade & Finance Monetary Policy Economic Education CBA 339 P.O. Box 880482 University of Nebraska-Lincoln Lincoln, NE 68588-0489, USA Phone: (402) 472-2319 Fax: (402) 472-9700 rbutters@nebraskacouncil.org	Butters, Roger B	Economic Education