The Evidence on Credit Constraints in Post‐Secondary Schooling

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ID: 299691
2002
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Abstract
This paper examines the family income–college enrolment relationship and the evidence on credit constraints in post‐secondary schooling. We distinguish short run liquidity constraints from the long term factors that promote cognitive and noncognitive ability. Long run factors crystallised in ability are the major determinants of the family income ‐ schooling relationship, although there is some evidence that up to 8% of the total US population is credit constrained in a short run sense. Evidence that IV estimates of the returns to schooling exceed OLS estimates is sometimes claimed to support the existence of substantial credit constraints. This argument is critically examined.
Reference Key
openalex_W3124058134 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Pedro Carneiro, James J. Heckman
Journal the economic journal
Year 2002
DOI
10.1111/1468-0297.00075
URL
https://doi.org/10.1111/1468-0297.00075
Keywords Keywords not found

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