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Do student loans improve accessibility to higher education and student performance? An impact study of the SOFES program in Mexico

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Author Info
Erik Canton
Andreas Blom

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Abstract

Financial aid to students in tertiary education can contribute to human capital accumulation through two channels: increased enrolment and improved student performance. We analyse the quantitative importance of both channels in the context of a student loan program (SOFES) implemented at private universities in Mexico.

With regard to the first channel, results from the Mexican household survey indicate that financial support has a strongly positive effect on university enrolment.

Two data sources are used to investigate the second channel, student performance. Administrative data provided by SOFES are analysed using a Regression-Discontinuity design, and survey data enable us to perform a similar analysis using a different control group. The empirical results suggest that SOFES recipients (i) show better academic performance, and (ii) tend to have more part-time jobs than students without a credit from SOFES.

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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Papers with number 33.

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Date of creation: Jul 2004
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Handle: RePEc:cpb:discus:33

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Related research
Keywords: education; students; student finance; accessibility; student performance; mexico;

Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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References listed on IDEAS
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  1. Barbara Sianesi & John Van Reenen, 2003. "The Returns to Education: Macroeconomics," Journal of Economic Surveys, Blackwell Publishing, vol. 17(2), pages 157-200, 04. [Downloadable!] (restricted)
  2. Wilbert van der Klaauw, 2002. "Estimating the Effect of Financial Aid Offers on College Enrollment: A Regression-Discontinuity Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1249-1287, November. [Downloadable!] (restricted)
  3. Chapman, Bruce & Ryan, Chris, 2005. "The access implications of income-contingent charges for higher education: lessons from Australia," Economics of Education Review, Elsevier, vol. 24(5), pages 491-512, October. [Downloadable!] (restricted)
    Other versions:
  4. Psacharopoulos, George & Patrinos, Harry Anthony, 2002. "Returns to investment in education : a further update," Policy Research Working Paper Series 2881, The World Bank. [Downloadable!]
    Other versions:
  5. Eric Bettinger, 2004. "How Financial Aid Affects Persistence," NBER Working Papers 10242, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, 2nd ed," NBER Books, National Bureau of Economic Research, Inc, number beck75-1.
  7. Ralph Stinebrickner & Todd R. Stinebrickner, 2003. "Working during School and Academic Performance," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 449-472, April. [Downloadable!]
    Other versions:
  8. Thomas J. Kane, 1995. "Rising Public College Tuition and College Entry: How Well Do Public Subsidies Promote Access to College?," NBER Working Papers 5164, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Chapman, Bruce, 1997. "Conceptual Issues and the Australian Experience with Income Contingent Charges for Higher Education," Economic Journal, Royal Economic Society, vol. 107(442), pages 738-51, May. [Downloadable!] (restricted)
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  10. Thomas J. Kane, 2003. "A Quasi-Experimental Estimate of the Impact of Financial Aid on College-Going," NBER Working Papers 9703, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July. [Downloadable!] (restricted)
  12. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August. [Downloadable!] (restricted)
  13. James Heckman & Pedro Carneiro, 2003. "Human Capital Policy," NBER Working Papers 9495, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Temple, Jonathan, 2001. "Growth Effects of Education and Social Capital in the OECD Countries," CEPR Discussion Papers 2875, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  15. Susan M. Dynarski, 1999. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," NBER Working Papers 7422, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  16. Stephen Cameron & Christopher Taber, 2000. "Borrowing Constraints and the Returns to Schooling," NBER Working Papers 7761, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Marc van der Steeg, 2005. "Why should governments intervene in education, and how effective is education policy," CPB Memoranda 122, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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