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Why Are Youth from Lower-income Families Less Likely to Attend University? Evidence from Academic Abilities, Parental Influences, and Financial Constraints

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Author Info
Frenette, Marc
Abstract

In this study, I use new Canadian data containing detailed information on academic abilities, parental influences, financial constraints, and other socio-economic background characteristics of youth to try to account for the large gap in university attendance across the income distribution. I find that 96% of the total gap in university attendance between youth from the top and bottom income quartiles can be accounted for by differences in observable characteristics. Differences in long-term factors such as standardized test scores in reading obtained at age 15, school marks reported at age 15, parental influences, and high-school quality account for 84% of the gap. In contrast, only 12% of the gap is related to financial constraints. Similar results hold across different income quartiles and when I use standardized test scores in mathematics and science. However, reading scores account for a larger proportion of the gap than other test scores.

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Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2007295e.

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Date of creation: 08 Feb 2007
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Handle: RePEc:stc:stcp3e:2007295e

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Keywords: Education; training and learning; Children and youth; Educational attainment; Education finance; Low income families; Literacy;

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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. Stephen V. Cameron & James J. Heckman, 2001. "The Dynamics of Educational Attainment for Black, Hispanic, and White Males," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 455-499, June. [Downloadable!] (restricted)
  2. Kane, Thomas J, 1994. "College Entry by Blacks since 1970: The Role of College Costs, Family Background, and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 878-911, October. [Downloadable!] (restricted)
  3. Frenette, Marc, 2007. "Do Universities Benefit Local Youth? Evidence from University and College Participation, and Graduate Earnings Following the Creation of a New University," Analytical Studies Branch Research Paper Series 2006283e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  4. Moffitt, Robert A., 1999. "New developments in econometric methods for labor market analysis," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 24, pages 1367-1397 Elsevier. [Downloadable!] (restricted)
  5. Zhao, John & Corak, Miles & Lipps, Garth, 2003. "Family Income and Participation in Post-secondary Education," Analytical Studies Branch Research Paper Series 2003210e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
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  6. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," NBER Working Papers 12006, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. John M. Barron & Mark C. Berger & Dan A. Black, 2006. "Selective Counteroffers," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 385-410, July. [Downloadable!]
  8. Jacob, Brian A., 2002. "Where the boys aren't: non-cognitive skills, returns to school and the gender gap in higher education," Economics of Education Review, Elsevier, vol. 21(6), pages 589-598, December. [Downloadable!] (restricted)
  9. Brian A. Jacob, 2002. "Where the boys aren't: Non-cognitive skills, returns to school and the gender gap in higher education," NBER Working Papers 8964, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Alan Manning & Helen Robinson, 2004. "Something in the way she moves: a fresh look at an old gap," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 169-188, April. [Downloadable!] (restricted)
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  11. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
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  12. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March. [Downloadable!] (restricted)
  13. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post-Secondary Schooling," NBER Working Papers 9055, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Frenette, Marc & Green, David A. & Milligan, Kevin, 2006. "Revisiting Recent Trends in Canadian After-Tax Income Inequality Using Census Data," Analytical Studies Branch Research Paper Series 2006274e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  15. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
  16. Drolet, Marie, 2005. "Participation in Post-secondary Education in Canada: Has the Role of Parental Income and Education Changed over the 1990s?," Analytical Studies Branch Research Paper Series 2005243e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
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  1. Pierre Lefebvre & Philip Merrigan, 2008. "Family Background, Family Income, Cognitive Tests Scores, Behavioural Scales and their Relationship with Post-secondary Education Participation: Evidence from the NLSCY," Cahiers de recherche 0830, CIRPEE. [Downloadable!]
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