Showing 1 - 8 of 8
Past estimates of the effect of family income on child development have often been plagued by endogeneity and measurement error. In this paper, we use an instrumental variables strategy to estimate the causal effect of income on children's math and reading achievement. Our identification derives...
Persistent link: https://www.econbiz.de/10008729254
We develop a human capital model with borrowing constraints explicitly derived from government student loan programs and private lending under limited commitment. Two key implications of our analysis are: (i) binding constraints may not depress investment; and (ii) a positive relationship...
Persistent link: https://www.econbiz.de/10003951129
This paper makes three contributions to the literature on educational attainment gaps by family income. First, we conduct a parallel empirical analysis of the effects of parental income on post-secondary (PS) attendance for recent high school cohorts in both the U.S. and Canada using data from...
Persistent link: https://www.econbiz.de/10003996908
We review studies of the impact of credit constraints on the accumulation of human capital. Evidence suggests that credit constraints have recently become important for schooling and other aspects of households' behavior. We highlight the importance of early childhood investments, since their...
Persistent link: https://www.econbiz.de/10009487423
More than low default rates, lenders are interested in the expected return on their loans. In this paper, we consider a number of other measures of repayment and nonpayment that are likely to be of direct interest to lenders. Using data from the Baccalaureate and Beyond Longitudinal Study, we...
Persistent link: https://www.econbiz.de/10010236433
We consider a general framework to study the evolution of wage and earnings residuals that incorporates features highlighted by two influential but distinct literatures in economics: (i) unobserved skills with changing non-linear pricing functions and (ii) idiosyncratic shocks that follow a rich...
Persistent link: https://www.econbiz.de/10010350514
Rising costs of and returns to college have led to sizeable increases in the demand for student loans in many countries. In the U.S., student loan default rates have also risen for recent cohorts as labor market uncertainty and debt levels have increased. We discuss these trends as well as...
Persistent link: https://www.econbiz.de/10010457242
This paper investigates the importance of family borrowing constraints in determining human capital investments in children at early and late ages. We begin by providing new evidence from the Children of the NLSY (CNLSY) which suggests that borrowing constraints bind for at least some families...
Persistent link: https://www.econbiz.de/10009633259