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Cash-on-Hand & College Enrollment: Evidence from Population Tax Data and Policy Nonlinearities

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  • Dayanand S. Manoli
  • Nicholas Turner

Abstract

We estimate causal effects of cash-on-hand on college enrollment decisions of students from low-income families. Using population-level, administrative data from United States income tax returns, we exploit variation in tax refunds received in the spring of the high school senior year. The variation in tax refunds results from the kink point between the phase-in and maximum credit portions of the Earned Income Tax Credit schedule. The results suggest tax refunds received in the spring of the high school senior year have meaningful effects on college enrollment.

Suggested Citation

  • 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.
  • Handle: RePEc:nbr:nberwo:19836
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    References listed on IDEAS

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    Cited by:

    1. Manoli, Dayanand & Weber, Andrea, 2016. "The Effects of the Early Retirement Age on Retirement Decisions," IZA Discussion Papers 10154, Institute for the Study of Labor (IZA).
    2. Hilary Hoynes & Jesse Rothstein, 2016. "Tax Policy Toward Low-Income Families," NBER Working Papers 22080, National Bureau of Economic Research, Inc.
    3. Sachs, Dominik & Findeisen, Sebastian, 2014. "Designing Efficient Education and Tax Policies," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100504, Verein für Socialpolitik / German Economic Association.
    4. Kerwin Kofi Charles & Erik Hurst & Matthew J. Notowidigdo, 2015. "Housing Booms and Busts, Labor Market Opportunities, and College Attendance," NBER Working Papers 21587, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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