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Credit Access and College Enrollment
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2017 (English)In: Journal of Political Economy, ISSN 0022-3808, E-ISSN 1537-534X, Vol. 125, no 2, 562-622 p.Article in journal (Refereed) Published
Abstract [en]

Does access to credit explain the gap in schooling attainment between children from richer and poorer families? I present new evidence on this important question based on the causal effects of two college loan programs in Chile that are available to students scoring above a threshold on the national college admission test, enabling a regression discontinuity design. I find that credit access leads to a 100 percent increase in immediate college enrollment and a 50 percent increase in the probability of ever enrolling. Moreover, access to loans effectively eliminates the income gap in enrollment and number of years of college attainment.

Place, publisher, year, edition, pages
2017. Vol. 125, no 2, 562-622 p.
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-321432DOI: 10.1086/690829ISI: 000398681700007OAI: oai:DiVA.org:uu-321432DiVA: diva2:1095786
Available from: 2017-05-16 Created: 2017-05-16 Last updated: 2017-05-16

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