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The evidence on credit constraints in post-secondary schooling

Author: Pedro Carneiro; James J Heckman; National Bureau of Economic Research.
Publisher: Cambridge, MA. : National Bureau of Economic Research, ©2002.
Series: Working paper series (National Bureau of Economic Research), no. 9055.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Abstract: 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  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Pedro Carneiro; James J Heckman; National Bureau of Economic Research.
OCLC Number: 50504915
Notes: "July 2002."
Description: 1 online resource (29, [13] pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 9055.
Responsibility: Pedro Carneiro, James J. Heckman.

Abstract:

Abstract: 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.

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