Essays in Labor Economics and Postsecondary Education

In Chapter 1 I investigate the supply of college majors and how this facet of institutional behavior influences student outcomes and costs in higher education. As a first contribution, I identify a decades-long trend in 4-year postsecondary education in the United States--the production of bachelor's degrees measured by their concentration across majors has diversified significantly over time. I document this pattern in multiple data sources and determine that within-college expansion of program options is a key driver of the trend. Isomorphic tendencies and colleges' acute attention to their close peer institutions provide the most consistent explanation for the way colleges have accommodated increasing demand for a bachelor's degree over time. I furthermore show that major diversification led to an increase in average instructional costs per student. This increase stemmed from spillovers within institutions as students shifted enrollment away from some pre-existing majors and into new and related programs. However, I also find major diversification increased 6-year graduation rates, suggesting students may sort more effectively across majors when more options are available. This highlights an important trade-off for colleges: increased costs for a more diverse set of major options can attract and retain more potential graduates. In Chapter 2 I estimate the labor supply effects of expanding Income-driven repayment (IDR) plan options for student loan borrowers in the the United States (US). Using two cohorts of former college students and detailed longitudinal data on employment, earnings, and student loan histories I show borrowers exposed to the 2009 IDR expansion were subsequently 2.1 percentage points more likely to be employed than a comparison group of similar bachelor's degree recipients. These employment effects led to significant and positive changes near the middle of the monthly earnings distribution, suggesting the marginal borrowers moved into stable employment. The effects were also stronger among borrowers with lower test scores and those more at-risk of non-payment highlighting the insurance aspects of IDR. Weekly hours worked and hourly wages did not markedly change when new IDR plans were introduced, but these aggregate effects mask heterogeneity across race--hourly wages for Black borrowers increased by 5 to 6 percent in both the 2009 and 2015 expansions compared to Black individuals in comparison groups. Taken together, these results underscore IDR's ability to re-align some labor market distortions brought on by student debt. Finally, in Chapter 3 I build upon recent work highlighting the responsiveness of college investment to changes in employer demand for different skills. I clarify how much of this response is driven by students sorting into higher-demand fields at college entry or from changes to majors once enrolled. Attributing response to these margins can help colleges target resources and information to align investments in times of need (e.g., a shortage) and sharpen our collective understanding of how students weigh career prospects in their educational decisions. Using micro-data from the University of North Carolina 4-year college system (UNC) I show labor market demand responsiveness stems mainly from initial sorting of students into their first major choices, with an enrollment elasticity greater than three. This response is driven by transfer students and women. Completed degree elasticities for the full sample fall closer to two, suggesting a drop-off in response on the intensive within-school margin. I attribute this to two things. First, students who initially sorted into high-demand majors were less likely to complete their degree in five years, more likely to stop out, and accumulated fewer credits than other students. They were also significantly less likely to change their majors. Second, major changing, while positively related to degree completion, is not aligned with labor demand shocks, meaning students change to lower-demand majors, on average. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]