Signals, Information, and the Value of College Names

Abstract Colleges can send signals about their quality by adopting new, more alluring names. We study how this affects college choice and labor market performance of college graduates. Administrative data show name-changing colleges enroll higher-aptitude students, with larger effects for alluring-but-misleading name changes and among students with less information. A large resume audit study suggests a small premium for new college names in most jobs, and a significant penalty in lower-status jobs. We characterize student and employer beliefs using web-scraped text, surveys, and other data. Our study shows signals designed to change beliefs can have real, lasting impacts on market outcomes.