Can STEM Designation Increase Diversity in Economics?

This study examines how STEM designation in economics impacts minority enrollment. While previous research emphasize international student recruitment, we explore whether the STEM classification influences the decisions of domestic minority students. Specifically, we assess whether the increased international student presence fosters a more inclusive environment, potentially attracting underrepresented groups. Using institutional-level enrollment data from the National Center of Education Statistics and changes in the U.S. Department of Homeland Security (DHS) STEM Designated Degree Program List, we apply a difference-indifferences design to provide empirical insights into the broader effects of STEM designation on student demographics. We find that STEM designation is associated with increased diversity among economics graduates, with gains driven primarily by growth in non-resident and female students rather than racial diversity among domestic students. Secondly, a survival analysis shows that institutions with larger enrollments, more international students, and who do not have a business school are less likely to remove the economics major and more likely to adopt the economics STEM degree. Lastly, we examine the subset of Historically Black Colleges and Universities (HBCUs) and find a substantial decline in the percentage of economics bachelor's degrees awarded to Black and African Americans by HBCUs relative to other universities.