Borrowing Constraints and the Returns to Schooling

Cameron, Stephen V.; Taber, Christopher

doi:10.3386/w7761

Cited by 69 publications

(66 citation statements)

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“…This instrument has been used to estimate intergenerational schooling e ects, for example by Carneiro et al (2007) and it is related to the instrument used by Currie and Moretti (2003), who use college openings and closings as instruments for mother's schooling. In addition, college proximity has been used as an instrument for schooling by Card (1995), Kling (2001) and Cameron and Taber (2004). Table 5 show results whereby college proximity is used as an instrument in a 2SLS regression.…”

Section: Mtr-mts Assumption Not Rejectedmentioning

confidence: 95%

The Effect of Parents’ Schooling on Child’s Schooling: A Nonparametric Bounds Analysis

Haan

2011

Journal of Labor Economics

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The effect of parents' schooling on child's schooling: a nonparametric bounds analysis de Haan, M. Link to publication Citation for published version (APA):de Haan, M. (2010). The effect of parents' schooling on child's schooling: a nonparametric bounds analysis. Amsterdam: Amsterdam School of Economics. General rightsIt is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), other than for strictly personal, individual use, unless the work is under an open content license (like Creative Commons). Disclaimer/Complaints regulationsIf you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the material inaccessible and/or remove it from the website. Please Ask the Library: http://uba.uva.nl/en/contact, or a letter to: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands. You will be contacted as soon as possible. Download date: 10 May 2018The e ect of parents' schooling on child's schooling:A nonparametric bounds analysis Monique de Haan * Abstract A strong positive relation between parents' schooling and child's schooling does not necessarily re ect a causal relation. The recent empirical literature has used di erent approaches to identify intergenerational schooling e ects and produces contradictory ndings. This paper uses a new approach to investigate the e ect of parents' schooling on child's schooling: a nonparametric bounds analysis. By relying on a set of relatively weak and in part testable assumptions, this paper obtains informative bounds on the average causal impact of mother's and father's schooling on the schooling of their child. The tightest bounds, which are obtained using monotone instrumental variables, show that increasing mother's or father's schooling to a college degree has a positive e ect on child's schooling which is signi cantly di erent from zero, but substantially lower than the OLS estimates.

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Section: Mtr-mts Assumption Not Rejectedmentioning

confidence: 95%

The Effect of Parents’ Schooling on Child’s Schooling: A Nonparametric Bounds Analysis

Haan

2011

Journal of Labor Economics

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“…Positive external effects of higher education, however, are difficult to establish empirically (see, e.g., Heckman and Klenow, 1997;Krueger and Lindahl, 1999;Acemoglu and Angrist, 1999). Moreover, capital market imperfections do not seem to be very important (see, e.g., Shea, 2000;Cameron and Taber, 2000). 1 Why, then, is education subsidized?…”

Section: Introductionmentioning

confidence: 99%

Redistribution and Education Subsidies are Siamese Twins

2005

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We develop a model of human capital formation with endogenous labor supply and heterogeneous agents to explore the optimal level of education subsidies along with the optimal progressive schedule of the labor income tax and optimal capital income taxes. Subsidies on education ensure efficiency in human capital accumulation, while taxes on skilled labor help to redistribute income towards the less able. We thus provide a rationale for the widely observed presence of education subsidies. The actually observed tax codes and level of education subsidies suggest that a large part of education subsidies can be justified on these grounds.

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“…The District of Columbia and Maine are not included since the data set does not contain observations from these states. 9 Admittedly, these regressions do not necessarily identify the causal impact on study time. A natural attack would be to ask how students react when tuition policies change.…”

Section: Differences In Study Time Across Studentsmentioning

confidence: 99%

The Incentive Effects of Higher Education Subsidies on Student Effort

Şahin

2004

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper uses a game-theoretic model to analyze the disincentive effects of low-tuition policies on student effort. The model of parent and student responses to tuition subsidies is then calibrated using information from the National Longitudinal Survey of Youth 1979 and the High School and Beyond Sophomore Cohort: 1980-92. I find that although subsidizing tuition increases enrollment rates, it reduces student effort. This follows from the fact that a highsubsidy, low-tuition policy causes an increase in the percentage of less able and less highly motivated college graduates. Additionally-and potentially more important-all students, even the more highly motivated ones, respond to lower tuition levels by decreasing their effort levels. This study adds to the literature on the enrollment effects of low-tuition policies by demonstrating how high-subsidy, low-tuition policies have both disincentive effects on students' study time and adverse affects on human capital accumulation.

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Borrowing Constraints and the Returns to Schooling

Cited by 69 publications

References 0 publications

The Effect of Parents’ Schooling on Child’s Schooling: A Nonparametric Bounds Analysis

The Effect of Parents’ Schooling on Child’s Schooling: A Nonparametric Bounds Analysis

Redistribution and Education Subsidies are Siamese Twins

The Incentive Effects of Higher Education Subsidies on Student Effort

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