The Evidence on Credit Constraints in Post-Secondary Schooling / Pedro Carneiro, James J. Heckman.

Format:

Book

Author/Creator:

Carneiro, Pedro.

Contributor:

National Bureau of Economic Research.

Heckman, James J.

Series:

Working Paper Series (National Bureau of Economic Research) no. w9055.

NBER working paper series no. w9055

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2002.

Summary:

This paper examines the family income -- college enrollment relationship and the evidence on credit constraints in post-secondary schooling. We distinguish short-run liquidity constraints from the long-term factors that promote cognitive and noncognitive ability. Long-run factors crystallized in ability are the major determinants of the family income -- schooling relationship, although there is some evidence that up to 8% of the U.S. population is credit constrained in a short-run sense. Evidence that IV estimates of the returns to schooling exceed OLS estimates is sometimes claimed to support the existence of substantial credit constraints. This argument is critically examined.

Notes:

Print version record

July 2002.