Search Results
Author: Caucutt, Elizabeth M.
Resulting in 5 citations.
| 1. |
Caucutt, Elizabeth M. Lochner, Lance John |
|
Borrowing Constraints on Families with Young Children Presented: Cleveland, OH, Federal Reserve Bank of Cleveland Research Department Conference on Innovation in Education, November 17-18, 2005. Cohort(s): Children of the NLSY79, NLSY79 Publisher: Federal Reserve Bank of Cleveland Keyword(s): Children, Academic Development; Debt/Borrowing; Family Background and Culture; Family Income; Family Structure; Mothers, Race; Parental Investments; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); Test Scores/Test theory/IRT Permission to reprint the abstract has not been received from the publisher. This study investigates the role of family income and borrowing constraints in determining early invest-ments in children and youth achievement scores. As figure 3 shows, youths raised in families in the bottom third of the income distribution are much less likely to be among the highest PIAT test scorers (at ages 13–14) than are those in middle- and high-income groups.3 While more than 50 percent of all 13- to 14-year-olds in the top tercile of the income distribution are in the top third of the test-score distribution, fewer than 20 percent of those in the bottom income tercile managed such scores. These findings raise the natural question: To what extent do family borrowing constraints during early childhood and adolescence influence early investments in chil-dren, cognitive achievement levels, and ultimately college attendance and completion? Summary from Slides of the oral presentation at the conference. [Editor] Schooling Outcomes and Family Income
|
|
|
Bibliography Citation
Caucutt, Elizabeth M. and Lance John Lochner. "Borrowing Constraints on Families with Young Children." Presented: Cleveland, OH, Federal Reserve Bank of Cleveland Research Department Conference on Innovation in Education, November 17-18, 2005.. |
| 2. |
Caucutt, Elizabeth M. Lochner, Lance John |
|
Early and Late Human Capital Investments, Borrowing Constraints and the Family Working Paper No. 18493. National Bureau of Economic Research, October 2012. Also: http://www.nber.org/papers/w18493; also presented at the 2012 Society of Economic Dynamics Annual Meetings and at the 2012 AEA Meetings. Cohort(s): Children of the NLSY79, NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): College Graduates; Debt/Borrowing; Family Income; Family Structure; Financial Investments; Human Capital; Intergenerational Patterns/Transmission; Mothers, Education This paper investigates the importance of family borrowing constraints in determining human capital investments in children at early and late ages. We begin by providing new evidence from the Children of the NLSY (CNLSY) which suggests that borrowing constraints bind for at least some families with young children. Next, we develop an intergenerational model of lifecycle human capital accumulation to study the role of early versus late investments in children when credit markets are imperfect. We analytically establish the importance of dynamic complementarity in investment for the qualitative nature of investment responses to income and policy changes. We extend the framework to incorporate dynasties and use data from the CNLSY to calibrate the model. Our benchmark steady state suggests that roughly half of young parents and 12% of old parents are borrowing constrained, while older children are unconstrained. We also identify strong complementarity between early and late investments, suggesting that policies targeted to one stage of development tend to have similar effects on investment in both stages. We use this calibrated model to study the effects of education subsidies, loans and transfers offered at different ages on early and late human capital investments and subsequent earnings in the short-run and long-run. A key lesson is that the interaction between dynamic complementarity and early borrowing constraints means that early interventions tend to be more successful than later interventions at improving human capital outcomes. |
|
|
Bibliography Citation
Caucutt, Elizabeth M. and Lance John Lochner. "Early and Late Human Capital Investments, Borrowing Constraints and the Family." Working Paper No. 18493. National Bureau of Economic Research, October 2012. |
| 3. |
Caucutt, Elizabeth M. Lochner, Lance John |
|
Early and Late Human Capital Investments, Borrowing Constraints, and the Family Journal of Political Economy 128,3 (March 2020): 1065-1147. Also: https://www.journals.uchicago.edu/doi/full/10.1086/704759 Cohort(s): Children of the NLSY79 Publisher: University of Chicago Press Keyword(s): Credit/Credit Constraint; Human Capital; Intergenerational Patterns/Transmission; Mobility; Parental Investments We develop a dynastic human capital investment framework to study the importance of family borrowing constraints and uninsured labor market risk, as well as the process of intergenerational ability transmission, in determining human capital investments in children at different ages. We calibrate our model to data from the Children of the National Longitudinal Survey of Youth. While the effects of relaxing any borrowing limit at a single stage are modest, eliminating all life-cycle borrowing limits dramatically increases investments, earnings, and intergenerational mobility. The impacts of policy changes at college-going ages are greater when anticipated earlier, and shifting subsidies to earlier ages increases aggregate welfare and human capital. |
|
|
Bibliography Citation
Caucutt, Elizabeth M. and Lance John Lochner. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family." Journal of Political Economy 128,3 (March 2020): 1065-1147.
|
| 4. |
Caucutt, Elizabeth M. Lochner, Lance John Park, Youngmin |
|
Correlation, Consumption, Confusion, or Constraints: Why do Poor Children Perform so Poorly? NBER Working Paper No. 21023, National Bureau of Economic Research, March 2015. Also: http://www.nber.org/papers/w21023 Cohort(s): Children of the NLSY79, NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Armed Forces Qualifications Test (AFQT); Children, Academic Development; Children, Poverty; Family Background and Culture; Family Income; Home Observation for Measurement of Environment (HOME); Human Capital; Intergenerational Patterns/Transmission; Parental Influences; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); Risk Perception The economic and social mobility of a generation may be largely determined by the time it enters school given early developing and persistent gaps in child achievement by family income and the importance of adolescent skill levels for educational attainment and lifetime earnings. After providing new evidence of important differences in early child investments by family income, we study four leading mechanisms thought to explain these gaps: an intergenerational correlation in ability, a consumption value of investment, information frictions, and credit constraints. In order to better determine which of these mechanisms influence family investments in children, we evaluate the extent to which these mechanisms also explain other important stylized facts related to the marginal returns on investments and the effects of parental income on child investments and skills. |
|
|
Bibliography Citation
Caucutt, Elizabeth M., Lance John Lochner and Youngmin Park. "Correlation, Consumption, Confusion, or Constraints: Why do Poor Children Perform so Poorly?" NBER Working Paper No. 21023, National Bureau of Economic Research, March 2015. |
| 5. |
Caucutt, Elizabeth M. Lochner, Lance John Park, Youngmin |
|
Correlation, Consumption, Confusion, or Constraints: Why Do Poor Children Perform so Poorly? Scandinavian Journal of Economics 119,1 (January 2017): 102-147. Also: http://onlinelibrary.wiley.com/wol1/doi/10.1111/sjoe.12195/abstract Cohort(s): Children of the NLSY79, NLSY79 Publisher: Blackwell Publishing, Inc. => Wiley Online Keyword(s): Armed Forces Qualifications Test (AFQT); Children, Academic Development; Children, Poverty; Credit/Credit Constraint; Family Income; Home Observation for Measurement of Environment (HOME); Intergenerational Patterns/Transmission; Parental Influences; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading) Early developing and persistent gaps in child achievement by family income combined with the importance of adolescent skill levels for schooling and lifetime earnings suggest that a key component of intergenerational mobility is determined before individuals enter school. After documenting important differences in early child investments by family income, we study four leading mechanisms thought to explain these gaps: intergenerational ability correlation, consumption value of investment, information frictions, and credit constraints. We evaluate whether these mechanisms are consistent with other stylized facts related to the marginal returns on investments and the effects of parental income on child investments and skills. |
|
|
Bibliography Citation
Caucutt, Elizabeth M., Lance John Lochner and Youngmin Park. "Correlation, Consumption, Confusion, or Constraints: Why Do Poor Children Perform so Poorly?" Scandinavian Journal of Economics 119,1 (January 2017): 102-147.
|