The Evidence on Credit Constraints in Post-Secondary Schooling

Arbeitspapier

This paper examines the family income?college enrollment 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 crystallized in ability are the major determinants of the family income?schooling relationship, although there is some evidence that up to 8% of the U.S. 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 518

Classification and Topics

• Classification: Wirtschaft ; Project Evaluation; Social Discount Rate ; Factor Income Distribution ; Education: Government Policy
• Subject: human capital ; return to education ; credit constraints ; Bildungsverhalten ; Studium ; Bildungsinvestition ; Haushaltseinkommen ; Verschuldungsrestriktion ; Bildungsertrag ; Vereinigte Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Carneiro, Pedro ; Heckman, James Joseph
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/21423
• Last update: 10.03.2025, 11:46 AM CET