Borrowing Constraints, College Enrollment, and Delayed Entry

• 成果类型: Article
• 署名作者: Johnson, Matthew T.
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/669964
• 发表日期: 2013
• 页码: 669-725
• 关键词: credit constraints; higher-education; student loans; returns; models; matter; RISK; aid

摘要

In this article, I propose and estimate a dynamic model of education, borrowing, and work decisions of high school graduates. I examine the effect of relaxing borrowing constraints on educational attainment by simulating increases in the amount students are permitted to borrow from government-sponsored loan programs. My results indicate that borrowing constraints have a small impact on attainment: the removal of education-related borrowing constraints raises bachelor''s degree completion by 2.4 percentage points. Tuition subsidies are necessary to obtain larger increases: I find that higher subsidies for average-ability students are the most cost effective targeted tuition subsidies.