Sugar daddy u: human capital investment and the university-based supply of ‘romantic arrangements’

To deal with the financial hardships associated with rising college tuition, many female college students in the U.S. are turning to risqué forms of financing human capital investments, such as agreeing to potentially lucrative ‘romantic arrangements’ with older males, referred to as ‘sugar daddies,’ through the largest Internet-based club in the industry. Yet despite this recent trend, there is a relative paucity of published academic research on the economics of such behaviour. Using data from the more than 220 nationally ranked (by U.S. News & World Report’s America’s Best Colleges) colleges and universities in the U.S., presents results from both Poisson and scaled Poisson estimation suggesting that large, high-cost universities that are located in larger cities or where unemployment rates are higher lead the nation in the number of female students choosing such romantic arrangements in order to fund higher education. Moreover, those institutions that are chosen by more physically attractive female students, and those that enrol a higher percentage of female students, are also generating greater numbers of female student entrants into the sugar daddy industry. Each of these findings has implications for the human capital literature and the growing body of academic literature on the economics of beauty.     

Reviewers for Volume 41

The authors document the types of undergraduate colleges and universities attended by those who earned a doctorate in economics from an American university from 1966 through 2003. They examine relationships between type of undergraduate institution and attrition and time-to-degree in PhD programs. The total number of new economics PhDs awarded to U.S. citizens has declined precipitously over the past 30 years. Concurrently, the number of new economics doctorates who hold undergraduate degrees from U.S. universities has fallen by half, from a high of about 800 in 1972 to about 400 in 2003. Among those who have earned undergraduate degrees from American institutions, the mix of schools attended by the doctorates has remained relatively stable, with about 55 percent of those who earn a PhD in economics each year holding their bachelor's degree from a university that offers a PhD in economics and a bit more than 10 percent holding a bachelors degree from a selective liberal arts college. Currently, 18 of the 25 American undergraduate institutions that send the largest percentage of their graduating classes on to earn a PhD in economics are liberal arts colleges. Graduates of liberal arts colleges also have shorter time-to-degree and higher verbal Graduate Record Exam (GRE) scores than other economics PhD students.     

Regional Papers of Interest to Economic Educators

Using data collected from graduates who attended four large public universities in 1976, 1986, or 1996, the authors investigate the relationship between studying economics and civic behaviors. They compare students who majored in economics, business, or other majors, and by the number of undergraduate economics courses completed. Coursework is strongly associated with political party affiliation and donating money to candidates or parties, but not with voting in presidential, state, or local elections, nor with the likelihood or intensity of volunteerism. Business majors are less likely to engage in voting and volunteering. More economics coursework is usually associated with attitudes on policy issues closer to those reported in surveys of U.S. economists, while attitudes of business majors are more like those of general majors than economics majors.     

An Analysis of the Marginal Products of the One- and Two-Semester Introductory Economics Courses

The authors examine whether the administrative location of an economics department in a business versus liberal arts school alters the character of the economics program provided to undergraduate majors. To test this hypothesis, they constructed a curricular character index (CCI) based on a detailed accounting of assorted dimensions of an economics major. The CCI served as the dependent variable in a regression model that controlled for other institutional attributes that could influence curricular character. The sample of 148 primarily undergraduate institutions was selected to impose some semblance of a ceteris paribus environment. Contrary to earlier findings, the empirical results strongly indicate that the administrative location of an economics department in business versus liberal arts schools significantly changes the character of the program offered to majors.     

The Editors and Authors of Economics Journals: a Case of Institutional Oligopoly?

This paper examines data on the institutional backgrounds of editors and authors of the top 30 economics journals, identified by their 1995 citation impact. It is revealed, for example, that 70.8% of the journal editors were located in the United States, and twelve U.S. universities accounted for the location of more than 38.9%. Concerning journal article authors, 65.7% were located in U.S. institutions and twelve U.S. universities accounted for 21.8%. Arguably, the degree of institutional and geographical concentration of editors and authors may be unhealthy for innovative research in economics.     

An Illustration of the Bias of OLS for Yt = λY t-1 + U t

Using longitudinal data on undergraduates from 463 American colleges and universities from 1994–99, the authors examine how majoring in economics affects student opinions on 13 social, political, and economic issues. Economics majors were found to begin and end their college tenure with differing opinions on several issues when compared to other majors, and studying economics was found to be related to changes in several opinions. On the whole, studying economics appeared to increase beliefs in favor of personal freedom and decrease support for government intervention in markets. However, the authors find little evidence that economics majors leave college more united on their opinions when compared to the general student population.     

Econometrics as a Capstone Course in Economics

The author describes an econometrics capstone course design at a large public university that offers economics degrees in both business (BBA) and liberal arts (BS). The goal of the capstone is to provide a research experience similar to those in the honors college but on the smaller scale of a one-semester course. The revisions for converting an existing course to a capstone, the student activities adopted, and sample outcomes are addressed. The hurdles overcome within the respective colleges in order to create a capstone course are discussed. Summaries of several student projects as well as publication of faculty-mentored student research papers illustrate the viability of econometrics as a capstone course for institutions unable to establish a stand-alone research course for that purpose.     

Trends in undergraduate economics degrees: 1991–2015

Undergraduate degrees awarded in economics by U.S. colleges and universities were stagnant from 2009–10 through 2012–13, but have increased rapidly (almost 14 percent) over the two years from 2012–13 through 2014–15.     

Trends in undergraduate economics degrees, 2001–2018

Undergraduate degrees awarded in economics by U.S. colleges and universities were stagnant from 2010 (2009–10) through 2013, increased rapidly (almost 15%) over the two years from 2013 through 2015, but have subsequently leveled off in 2016 through 2018.     

The Structure of the Introductory Economics Course in United States Colleges

The authors examine class size, teaching methods, and the one-semester/two-semester organization of the first course in economics, where colleges and universities are classified into five broad categories, from liberal arts colleges to research institutions. Student satisfaction with respect to their institution is also reported.     

Economic Scholarship at Elite Liberal Arts Colleges: A Citation Analysis with Rankings

Although prominent economists at elite universities produce the most influential scholarship, economists at the nation's leading liberal arts colleges make significant contributions. The author measures the influence of 439 economists employed at the 50 top liberal arts colleges and ranks departments and individuals on the basis of citations. The author discovered a hierarchy with a small number of departments whose faculty produce cited scholarship, and a small number of influential economists employed at liberal arts colleges. The determinants of citations are estimated. Greater experience and more publications but not lower teaching loads are correlated with more citations.     

Trends in undergraduate economics degrees, 1991–2016

Undergraduate degrees awarded in economics by U.S. colleges and universities were stagnant from 2009–10 through 2012–13, increased rapidly (almost 15 percent) over the two years from 2012–13 through 2014–15, but have again leveled off in 2015–16.     

Expected Proficiencies for Undergraduate Economics Majors

The case for adopting a proficiencies approach to instruction and learning in the economics major is reiterated. This approach focuses on what graduating majors should be able to do with the knowledge and skills they acquire in the major, that is, their ability to demonstrate their learning in practical ways. The author's list of five proficiencies, advanced in the mid-1980s, is reviewed and revised; one additional proficiency is added and several others are refined. The author discusses the emphasis given to these proficiencies with top economics undergraduates at two major research universities, the author's experience with incorporating these proficiencies into his instruction, and the challenge of assessing the ability of economics majors to demonstrate these proficiencies.     

Core Requirements for the Economics Major

In this article, the authors are the first to describe the core economics curriculum requirements for economics majors at all American colleges and universities, as opposed to a sample of institutions. Not surprisingly, principles of economics is nearly universally required and implemented as a two-semester course in 85 percent of economics major programs. Most schools do not prescribe the order in which the principles sequence is taken. The intermediate courses are commonly required, although variation exists across institution types. While the quantitative requirement for the major has increased since 1980, significant differences exist among institutions and by academic rankings. As compared to 1950, there has been an increase in the number of required economics credit hours for the major.     

Faculty Role Models and Diversifying the Gender and Racial Mix of Undergraduate Economics Majors

The sex, race, and undergraduate composition of newly minted Ph.D.s in economics is analyzed. Liberal arts colleges are shown to yield a disproportionate number of female economists while economists of color tend to come from comprehensive universities.     

Trends in undergraduate economics degrees, 1991–2017

Undergraduate degrees awarded in economics by U.S. colleges and universities were stagnant from 2009–10 through 2012–13, increased rapidly (almost 15 percent) over the two years from 2012–13 through 2014–15, but have again leveled off in 2015–16 and 2016–17.     

LSAT Scores of Economics Majors: The 2003-2004 Class Update

Abstract: Using 1994-1995 data, Nieswiadomy (1998) found that economics majors scored well on the Law School Admissions Test. These results are frequently posted on university Web sites by economics departments. However, because the results are nearly 10 years old, it may be interesting to determine if economics majors still perform as well. The author, using current data for the 2003-2004 class of students entering law school, finds that economics majors still performed at or near the top of all majors taking the test. Economics majors rank first (156.6) of the 12 largest disciplines (those with more than 2,200 students entering law school). Economics ranks third behind physics/math (158.9) and philosophy/religion (157.4) in a set of 29 discipline groupings that are created to yield at least 700 students with similar majors.     

Undergraduate Coursework in Economics: A Survey Perspective

Survey results from a large sample of economics departments describe offerings for principles courses, coursework requirements for economics majors, and program augmentations such as capstone courses, senior seminars, and honors programs. Findings are reported for all institutions, and institutions are subdivided into six different categories based on public or private control and the highest economics degree offered. The coursework required for the economics major typically consists of ten courses, five in a required core and five electives. The most conspicuous curriculum change over the past 30 years is the rise of econometrics as a required course, now mandatory at about half of major programs. The authors estimate that about 40 percent of students who matriculate as first-year undergraduates take at least one economics course before they leave.     

Integrating econometrics: A modern undergraduate economics capstone experience

Angrist and Pischke (2017) call for a pedagogical paradigm shift by pointing out that econometrics courses often do not align with modern empirical approaches employed by economists. This article's authors propose a modern capstone experience, designed to address these concerns by integrating econometrics into the traditional capstone approach. They couple a full econometrics course with a traditional capstone course by weaving a cohesive econometrics-heavy research paper through the two courses. They feel this approach addresses the lack of econometrics skills among economics majors while simultaneously making some necessary improvements to undergraduate econometrics content. They hope this article will be a valuable resource for programs changing course requirements or revamping their curriculum to better fit the increasing demand for data analysis skills in the job market.