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Credit Access and College Enrollment

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  • Solis, Alex

    () (Department of Economics)

Abstract

Does limited access to credit explain some of the gap in schooling attainment between children from richer and poorer families? I present new evidence on this important question using data from two loan programs for college students in Chile. Both programs offer loans to students who score above a threshold on the national college admission test, enabling a regression discontinuity evaluation design. I find that students who score just above the cutoff have nearly 20 percentage points higher enrollment in first, second and third year than students who score just below, which represent relative increases of 100% , 213% and 446% respectively. More importantly, access to the loan program effectively eliminates the family income gradient in enrollment among students with similar test scores.

Suggested Citation

  • Solis, Alex, 2013. "Credit Access and College Enrollment," Working Paper Series 2013:12, Uppsala University, Department of Economics.
  • Handle: RePEc:hhs:uunewp:2013_012
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    References listed on IDEAS

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    Cited by:

    1. Avitabile,Ciro & Bobba,Matteo & Pariguana,Marco, 2015. "High school track choice and financial constraints : evidence from urban Mexico," Policy Research Working Paper Series 7427, The World Bank.
    2. Elena Mattana & Juanna Joensen, 2016. "Student Aid, Academic Achievement, and Labor Market Behavior," 2016 Meeting Papers 1102, Society for Economic Dynamics.
    3. Elena Mattana & Juanna Joensen, 2014. "Student Aid, Academic Achievement, and Labor Market Behavior: Grants or Loans?," 2014 Meeting Papers 707, Society for Economic Dynamics.
    4. Cáceres-Delpiano, Julio & Giolito, Eugenio P. & Castillo, Sebastián, 2015. "Early Impacts of College Aid," IZA Discussion Papers 9238, Institute for the Study of Labor (IZA).
    5. Lindsay C. Page & Judith Scott-Clayton, 2015. "Improving College Access in the United States: Barriers and Policy Responses," NBER Working Papers 21781, National Bureau of Economic Research, Inc.
    6. Justine Hastings & Christopher A. Neilson & Seth D. Zimmerman, 2015. "The Effects of Earnings Disclosure on College Enrollment Decisions," NBER Working Papers 21300, National Bureau of Economic Research, Inc.
    7. Dayanand S. Manoli & Nicholas Turner, 2014. "Cash-on-Hand & College Enrollment: Evidence from Population Tax Data and Policy Nonlinearities," NBER Working Papers 19836, National Bureau of Economic Research, Inc.
    8. Tomás Rau & Eugenio Rojas & Sergio Urzúa, 2013. "Loans for Higher Education: Does the Dream Come True?," NBER Working Papers 19138, National Bureau of Economic Research, Inc.
    9. Busso, Matias & Dinkelman, Taryn & Claudia Martínez, A. & Romero, Dario, 2017. "The effects of financial aid and returns information in selective and less selective schools: Experimental evidence from Chile," Labour Economics, Elsevier, vol. 45(C), pages 79-91.
    10. Avitabile, Ciro & Bobba, Matteo & Pariguana, Marco, 2017. "High School Track Choice and Liquidity Constraints: Evidence from Urban Mexico," IZA Discussion Papers 10506, Institute for the Study of Labor (IZA).
    11. Busso, Matias & Dinkelman, Taryn & Claudia Martínez, A. & Romero, Dario, 2017. "The effects of financial aid and returns information in selective and less selective schools: Experimental evidence from Chile," Labour Economics, Elsevier, vol. 45(C), pages 79-91.
    12. Susan M. Dynarski, 2015. "An Economist's Perspective on Student Loans in the United States," CESifo Working Paper Series 5579, CESifo Group Munich.
    13. Clair Null & Clemencia Cosentino & Swetha Sridharan & Laura Meyer, "undated". "Policies and Programs to Improve Secondary Education in Developing Countries: A Review of the Evidence," Mathematica Policy Research Reports 516e420e637c4851b15e6a3f6, Mathematica Policy Research.

    More about this item

    Keywords

    college enrollment; credit constraints; income gap; college dropout; Chile;

    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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