, Volume 27, Issue 3, pp 273-282

An application of the nested multinomial logit model to enrollment choice behavior

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Data bases containing information on the socioeconomic characteristics and post-high school activities of large numbers of young people are commonly used in enrollment demand studies. While researchers almost always use the multinomial logit approach to obtain estimates of the effects of the independent variables in this context, this technique has a potentially serious limitation. This study presents an alternative to multinomial logit and contrasts estimated results from the two approaches using data on 446 high-school graduates in a midwestern state. The results are different enough to suggest that researchers should explore alternatives to multinomial logit when using this type of data base.