Major Complexity Index and College Skill Production

We propose an easily computable measure called the Major Complexity Index (MCI) that captures the latent skills taught in different majors. By applying the Method of Reflections to the major-to-occupation network, we construct a scalar measure of the relative complexity of majors. Our measure provides strong explanatory power of major average earnings and employment. Further evidence suggests that the MCI is strongly associated with advanced skills such as quantitative problem-solving, and the use of computing technology. We also provide a two-stage algorithm to partial out selection on observables which opens up possibilities of applying the complexity measure in various contexts.