Does Advanced Placement Economics Exam Participation and Performance Predict Undergraduate Economics Major Completion?

Abstract

Students who take an Advanced Placement (AP) Microeconomics and/or AP Macroeconomics exam may be more interested in economics than their non-AP exam peers and more likely to complete an economics major. Performance on AP exams in economics may also affect students’ economics major completion. This study uses binary probit estimations to assess how participation in and performance on AP exams in economics affects students’ completion of an economics major. The findings suggest students who take both AP exams in economics are significantly more likely to graduate with an economics major compared with non-AP students who complete their introductory economics coursework in college. In addition, strong performance on the AP Microeconomics exam significantly increases a student’s probability of earning an economics major. Receiving high scores on both AP Economics exams is also significantly and positively correlated with economics major completion. JEL Classifications: A21, A22