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Title: Testing for Educational Credit Constraints Using Heterogeneity in Individual Time Preferences
Resulting in 1 citation.
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Cowan, Benjamin W. |
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Testing for Educational Credit Constraints Using Heterogeneity in Individual Time Preferences Journal of Labor Economics 34,2 (April 2016): 363-402. Also: http://www.journals.uchicago.edu/doi/abs/10.1086/683644 Cohort(s): NLSY79 Publisher: University of Chicago Press Keyword(s): College Enrollment; Credit/Credit Constraint; Disadvantaged, Economically; Educational Attainment; Human Capital; Racial Differences; Time Preference I develop a model in which individual time discount rates have a larger effect on human capital accumulation when credit constraints are binding. Impatient individuals obtain less schooling when borrowing constraints limit the ability to finance consumption during school. Using data from the NLSY79, I show that self-reported measures of time preferences have a significantly higher effect on the college attendance decisions of blacks than those of whites and the decisions of low-income youths than those of high-income youths. These results provide new evidence that members of disadvantaged groups obtain lower levels of schooling because they are credit constrained. |
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Bibliography Citation
Cowan, Benjamin W. "Testing for Educational Credit Constraints Using Heterogeneity in Individual Time Preferences." Journal of Labor Economics 34,2 (April 2016): 363-402.
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