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Credit Access and College Enrollment

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  • Alex Solis

Abstract

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.

Suggested Citation

  • Alex Solis, 2017. "Credit Access and College Enrollment," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 562-622.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/690829
    DOI: 10.1086/690829
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    More about this item

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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