ABSTRACT
Chapter 4 explores the relationship between rent seeking, higher education, and economic performance. It is hypothesized that college students choose their major in response to economic incentives. Using data from the Integrated Postsecondary Education Data System, a negative correlation between the composition of rent-seeking-related degrees awarded at public postsecondary institutions and growth at the state level is established. This suggests that policymakers should look to curb the level of rent seeking as it is not only bad for growth but can also waste human capital and taxpayer dollars.
