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Framing the Human Capital Investment Decision: Examining Gender Bias in Student Loan Borrowing

Author

Listed:
  • Suzanne Bartholomae

    (Iowa State University)

  • D. Elizabeth Kiss

    (Kansas State University)

  • Jesse B. Jurgenson

    (Iowa State University)

  • Barbara O’Neill

    (Rutgers Cooperative Extension)

  • Sheri Lokken Worthy

    (University of Georgia)

  • Jinhee Kim

    (University of Maryland)

Abstract

Recent literature suggests that the persistent gender wage gap, joined with a larger proportion of student loan debt, reduces the financial benefits of a college degree for women. Grounded in the theory of human capital and behavioral finance, this study investigates gender differences in student loan decisions using an experimental survey design with the online data collection. Participants (n = 1926) were randomly assigned to a treatment scenario about whether to enter college or the workforce that was manipulated by attribute frames of a gain, loss, or aspiration and varied by the gender of the character in a hypothetical scenario. The attribute frames did not influence the evaluation of student loan decisions. No significant gender differences were found in the evaluation of student loan borrowing or the experimental treatment scenarios, suggesting societal movement towards more gender-neutral attitudes regarding student loan borrowing and degree-seeking motivations.

Suggested Citation

  • Suzanne Bartholomae & D. Elizabeth Kiss & Jesse B. Jurgenson & Barbara O’Neill & Sheri Lokken Worthy & Jinhee Kim, 2019. "Framing the Human Capital Investment Decision: Examining Gender Bias in Student Loan Borrowing," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 132-145, March.
    • Handle: RePEc:kap:jfamec:v:40:y:2019:i:1:d:10.1007_s10834-018-9603-6
    DOI: 10.1007/s10834-018-9603-6
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    Cited by:

    1. Vanessa Martins Valcanover & Igor Bernardi Sonza & Wesley Vieira da Silva, 2020. "Behavioral Finance Experiments: A Recent Systematic Literature Review," SAGE Open, , vol. 10(4), pages 21582440209, November.
    2. Robin Henager & Sophia T. Anong & Joyce Serido & Soyeon Shim, 2021. "Does Financial Satisfaction Vary Depending on the Funding Strategy Used to Pay for College?," Journal of Family and Economic Issues, Springer, vol. 42(3), pages 429-448, September.
    3. Suzanne Bartholomae & Jonathan J. Fox, 2021. "A Decade Review of Research on College Student Financial Behavior and Well-Being," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 154-177, July.

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