Educational Debt Burden and Career Choice: Evidence from a Financial Aid Experiment at NYU Law School
Abstract
This paper examines the influence of psychological responses to debt on career choices from an experiment in which alternative financial aid packages were assigned by lottery to a set of law school admits. The packages had equivalent monetary value, but one required the student to take on a loan that would be paid for by the school if he worked in public interest law, while the other covered tuition as long as the student worked in public interest law. If he did not, the student would be required to reimburse the school. Tuition assistance recipients have a 36 to 45 percent higher public interest placement rate and, when lottery results were announced before enrollment, were twice as likely to enroll. (JEL I21, I22, J44, D14)Download Info
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Bibliographic Info
Article provided by American Economic Association in its journal American Economic Journal: Applied Economics.
Volume (Year): 1 (2009)
Issue (Month): 1 (January)
Pages: 1-21
Note: DOI: 10.1257/app.1.1.1
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Related research
Keywords:Find related papers by JEL classification:
- D14 - Microeconomics - - Household Behavior - - - Personal Finance
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance
- J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- David Flacher & Hugo Harari-Kermadec & Léonard Moulin, 2011.
"Contributory education scheme : theoretical basis and application,"
Post-Print
hal-00606684, HAL.
- David Flacher & Hugo Harari-Kermadec & Léonard Moulin, 2011. "Contributory education scheme: Theoretical basis and application," Investigaciones de Economía de la Educación volume 6, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 30, pages 495-502 Asociación de Economía de la Educación.
- Philip Oreopoulos & Kjell G. Salvanes, 2009. "How large are returns to schooling? Hint: Money isn't everything," NBER Working Papers 15339, National Bureau of Economic Research, Inc.
- Hugo Harari-Kermadec & David Flacher, 2011. "Tuition fees, self-esteem and social heterogeneity," Post-Print hal-00566151, HAL.
- Rothstein, Jesse & Rouse, Cecilia Elena, 2011.
"Constrained after college: Student loans and early-career occupational choices,"
Journal of Public Economics,
Elsevier, vol. 95(1-2), pages 149-163, February.
- Rothstein, Jesse & Rouse, Cecilia Elena, 2011. "Constrained after college: Student loans and early-career occupational choices," Journal of Public Economics, Elsevier, vol. 95(1), pages 149-163.
- Jesse Rothstein & Cecilia Elena Rouse, 2007. "Constrained After College: Student Loans and Early Career Occupational Choices," NBER Working Papers 13117, National Bureau of Economic Research, Inc.
- Caetano, Gregorio & Patrinos, Harry A. & Palacios, Miguel, 2011. "Measuring aversion to debt: an experiment among student loan candidates," Policy Research Working Paper Series 5737, The World Bank.
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