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Family Income and Higher Education Choices: The Importance of Accounting for College Quality

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  • Josh Kinsler
  • Ronni Pavan

Abstract

In the examination of the determinants of educational choices, little attention has been devoted to the relationship between family income and the quality of higher education. Using the 1979 and 1997 waves of the NLSY, we show that family income significantly affects the quality of higher education, especially for high-ability individuals.While the impact of family income on college quality is significant in both samples, it has declined considerably over time for high-ability students. Overall, the trends we observe are highly consistent with increases in tuition across the quality spectrum, coupled with more generous merit-based aid at high-quality institutions.

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File URL: http://www.jstor.org/stable/pdfplus/10.1086/663649
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File URL: http://www.jstor.org/stable/full/10.1086/663649
Download Restriction: Access to the online full text or PDF requires a subscription.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Human Capital.

Volume (Year): 5 (2011)
Issue (Month): 4 ()
Pages: 453 - 477

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Handle: RePEc:ucp:jhucap:doi:10.1086/663649

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Web page: http://www.journals.uchicago.edu/JHC/

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Cited by:
  1. Rodney Andrews & Jing Li & Michael Lovenheim, 2014. "Heterogeneous Paths Through College: Detailed Patterns and Relationships with Graduation and Earnings," NBER Working Papers 19935, National Bureau of Economic Research, Inc.
  2. Michael F. Lovenheim & C. Lockwood Reynolds, 2013. "The Effect of Housing Wealth on College Choice: Evidence from the Housing Boom," Journal of Human Resources, University of Wisconsin Press, vol. 48(1), pages 1-35.
  3. Gonzalo Castex & Evgenia Dechter, 2013. "The Changing Roles of Education and Ability in Wage Determination," Working Papers Central Bank of Chile 704, Central Bank of Chile.

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