Comparing tertiary graduates with and without student loans in Latvia

Abstract

Using a nationally representative sample, this paper describes the profile of student borrowing in Latvia. The paper, more specifically, explores whether higher education graduates with student loans are significantly different from graduates without student loans in Latvia. We compare two groups of university graduates in terms of their demographic and household characteristics, income, and activity in the labor market in terms of the rank of appointment in the company and supplementary income job. Using data from the survey Professional Activity of Graduates of Institutions of Higher and Vocational Education conducted in 2006, differences are observed in the characteristics of their households, ethnicity, and age. We conclude that, on average, student debt holders and higher education graduates without student loans are rather similar in terms of gender, employment pattern, and income.

Student debt among University of Latvia graduates: Repayment prospects under income-contingent student loan scheme

“…An ethnicity variable in relation to student borrowing in Latvia was examined by Ait Si Mhamed and Kaša (2010). They found that student loans are mostly held by ethnic Latvians compared to other ethnic groups in the country (Ait Si Mhamed & Kaša, 2010). Thus, the ethnicity variable is not included in the analysis in the current paper.…”

“…This analysis is relevant as it will inform which groups of graduates are likely to hold higher student debt levels. The ethnicity variable will not be considered in our analysis because earlier research on higher education graduates with student debt in Latvia has shown that only an insignificant number of non-Latvians hold student debt (Ait Si Mhamed & Kaša, 2010).…”

“…While there are few studies examining the population of graduates with student loans in Latvia (Ait Si Mhamed & Kaša, 2010), internationally this group of higher education recipients is frequently studied in order to inform public policy debates. The current study aims to contribute to knowledge about the characteristics of higher education graduates with student loans in Latvia by using data from a survey of University of Latvia graduates in 2009.…”