A day late and a dollar short: Liquidity and household formation among student borrowers

• 成果类型: Article
• 署名作者: Goodman, Sarena; Isen, Adam; Yannelis, Constantine
• 署名单位: Federal Reserve System - USA; Federal Reserve System Board of Governors; United States Department of the Treasury; University of Chicago; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.04.033
• 发表日期: 2021
• 页码: 1301-1323
• 关键词: Human capital; student loans; Homeownership; mortgage; household finance

摘要

The federal government encourages human capital investment through lending and grant programs, but resources from these programs may also finance non-education activities for liquidity-constrained students. To explore this possibility, we use administrative data for federal student borrowers linked to tax records and a sharp discontinuity generated by the timing of a student's 24th birthday, which induces a jump in federal support. We es-timate a corresponding increase in homeownership, with larger effects among those most financially constrained, and find supplemental evidence of lagged marriage and fertility ef-fects. Analysis of earnings, savings, and heterogeneity favors liquidity over human capital in explaining the results. (c) 2021 Elsevier B.V. All rights reserved.