Liberty for More: Finance and Educational Opportunities
AbstractBanking reforms—that reduced interest rates—boosted college enrollment rates among able students from middle class families. We define “able” students as those with learning aptitude scores in the top two-thirds of the U.S. population. We define “middle class” as families in which both parents are not highly-educated (above 12 years of education) and that are neither in the bottom fourth nor in the top 10 percent of the distribution family income in the U.S. Our findings suggest that credit conditions, the ability of an individual to benefit from college, and a family’s financial and educational circumstances combine to shape college decisions. The functioning of the financial system plays a powerful role in shaping the degree to which a child’s educational choices—and hence economic opportunities—are defined by parental income.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19380.
Date of creation: Aug 2013
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Note: CF LS
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- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
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- J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
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- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-24 (All new papers)
- NEP-DEM-2013-09-24 (Demographic Economics)
- NEP-EDU-2013-09-24 (Education)
- NEP-PKE-2013-09-24 (Post Keynesian Economics)
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