Cash-on-Hand and College Enrollment: Evidence from Population Tax Data and the Earned Income Tax Credit

• 成果类型: Article
• 署名作者: Manoli, Day; Turner, Nichoias
• 署名单位: University of Texas System; University of Texas Austin; Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20160298
• 发表日期: 2018
• 页码: 242-271
• 关键词: family income; student aid; higher-education; housing wealth; constraints; consumption; outcomes; liquidity; IMPACT; matter

摘要

We estimate causal effects of cash-on-hand on college enrollment decisions of students from low-income families. Using population level, administrative data from US income tax returns, we exploit variation in tax refunds received in the spring of the high school senior year. The variation in tax refunds results from the kink point between the phase-in and maximum credit portions of the Earned Income Tax Credit schedule. The results suggest tax refunds received in the spring of the high school senior year have meaningful effects on college enrollment.