The Relationship Between Family Income and Schooling Attainment: Evidence from a Liberal Arts College with a Full Tuition Subsidy Program
Researchers have long been interested in understanding why a Strong relationship between family income and educational attainment exists at virtually all levels of schooling. In part due to a recent increase in the disparity between the wages of college graduates and the wages of individuals with less than a college degree, there has been a specific interest in understanding why individuals from low income families are less likely to graduate from college than other students. Using unique new data obtained directly from a liberal arts school that maintains a full tuition subsidy program, this paper provides direct evidence that family environment reasons that are unrelated to the tuition costs of college are very important. The paper pays close attention to the issue of selection bias by deriving a set of seemingly very plausible conditions under which the estimator of interest is "conservative". The findings, which suggest that non-trivial differences in educational attainment would exist even if tuition was zero for all students, have implications for expensive policy programs such as the full tuition subsidy program that was recently approved by the state of California.
|Date of creation:||2000|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, Reference Centre, Social Science Centre, University of Western Ontario, London, Ontario, Canada N6A 5C2|
Phone: 519-661-2111 Ext.85244
Web page: http://economics.uwo.ca/research/research_papers/department_working_papers.html
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.:
- repec:fth:prinin:338 is not listed on IDEAS
- Belman, Dale & Heywood, John S, 1991. "Sheepskin Effects in the Returns to Education: An Examination on Women and Minorities," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 720-24, November.
- Belman, Dale & Heywood, John S, 1997. "Sheepskin Effects by Cohort: Implications of Job Matching in a Signaling Model," Oxford Economic Papers, Oxford University Press, vol. 49(4), pages 623-37, October.
- Heckman, James J & Lochner, Lance & Taber, Christopher, 1998.
"General-Equilibrium Treatment Effects: A Study of Tuition Policy,"
American Economic Review,
American Economic Association, vol. 88(2), pages 381-86, May.
- James J. Heckman & Lance Lochner & Christopher Taber, 1998. "General Equilibrium Treatment Effects: A Study of Tuition Policy," NBER Working Papers 6426, National Bureau of Economic Research, Inc.
- David Card & Alan Krueger, 1990.
"Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States,"
NBER Working Papers
3358, National Bureau of Economic Research, Inc.
- Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
- Charles F. Manski, 1993.
"Adolescent Econometricians: How Do Youth Infer the Returns to Schooling?,"
in: Studies of Supply and Demand in Higher Education, pages 43-60
National Bureau of Economic Research, Inc.
- Manski, C.F., 1991. "Adolescent Econometricians : How Do Youth Infer the Returns to Schooling," Working papers 9110, Wisconsin Madison - Social Systems.
- Taubman, Paul, 1989. "Role of Parental Income in Educational Attainment," American Economic Review, American Economic Association, vol. 79(2), pages 57-61, May.
- repec:pri:indrel:338 is not listed on IDEAS
- Keane, Michael P & Wolpin, Kenneth I, 2001. "The Effect of Parental Transfers and Borrowing Constraints on Educational Attainment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 1051-1103, November.
- Loury, Linda Datcher & Garman, David, 1995. "College Selectivity and Earnings," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 289-308, April.
- Steven Stern & Victor Lavy & Michael Palumbo, 1998. "Simulation of Multinomial Probit Probabilities and Imputation of Missing Data," Virginia Economics Online Papers 388, University of Virginia, Department of Economics.
- Heywood, John S., 1994. "How widespread are sheepskin returns to education in the U.S.?," Economics of Education Review, Elsevier, vol. 13(3), pages 227-234, September.
- Jin Huem Park, 1994. "Estimation of Sheepskin Effects and Returns to Schooling Using he Old and the New CPS Measures of Educational Attainment," Working Papers 717, Princeton University, Department of Economics, Industrial Relations Section..
- Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 262-333, April.
- James J. Heckman & Lance Lochner & Christopher Taber, 1998.
"Tax Policy and Human Capital Formation,"
NBER Working Papers
6462, National Bureau of Economic Research, Inc.
- Patrinos, Harry Anthony, 1995. "Socioeconomic background, schooling, experience, ability and monetary rewards in Greece," Economics of Education Review, Elsevier, vol. 14(1), pages 85-91, March.
- B. F. Kiker & C. M. Condon, 1981. "The Influence of Socioeconomic Background on the Earnings of Young Men," Journal of Human Resources, University of Wisconsin Press, vol. 16(1), pages 94-105.
- Todd R. Stinebrickner, 1999. "Estimation Of A Duration Model In The Presence Of Missing Data," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 529-542, August.
- Hungerford, Thomas & Solon, Gary, 1987. "Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 175-77, February.
- Robert H. Haveman & Barbara L. Wolfe, 1984. "Schooling and Economic Well-Being: The Role of Nonmarket Effects," Journal of Human Resources, University of Wisconsin Press, vol. 19(3), pages 377-407.
- Edward P. Lazear, 1975.
"Education: Consumption or Production,"
NBER Working Papers
0104, National Bureau of Economic Research, Inc.
- Kevin M. Murphy & Finis Welch, 1992. "The Structure of Wages," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 285-326.
When requesting a correction, please mention this item's handle: RePEc:uwo:uwowop:20008. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.