The Effect of Liquid Housing Wealth on College Enrollment

Lovenheim, Michael

doi:10.1086/660775

Cited by 214 publications

(182 citation statements)

References 17 publications

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“…6 Lovenheim (2011) shows that, particularly for relatively low-income families, changes in housing wealth have a substantial effect on enrollment. In contrast, Hilger (2012) demonstrates that parental income has a relatively small negative effect on enrollment using the timing of layoffs.…”

Section: Postsecondary and Labor Market Policies Affecting Enrollmentmentioning

confidence: 99%

Out of work and into school: Labor market policies and college enrollment during the Great Recession

Barr

Turner

2015

Journal of Public Economics

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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 AbstractThe Great Recession brought large increases in unemployment and college enrollment; we explore how changing labor market conditions affected the decision to enroll, focusing on the role of state-specific dimensions of Unemployment Insurance (UI) policy. We measure the enrollment response to changing economic conditions, comparing eighteen and nineteen yearolds with older individuals likely to have accumulated some labor market experience. We find that individuals in their mid to late-twenties are proportionally more responsive to cyclical variation in economic conditions, and we identify a substantial role of the UI program in determining post-secondary enrollment outcomes. States in which academic post-secondary programs unrelated to a specific occupation are allowable under UI have substantially magnified enrollment responses to local economic conditions. In addition, we provide some of the first evidence that the duration of UI affects a displaced individual's propensity to enroll. These findings identify a substantial overlap between UI policy and post-secondary enrollment decisions, indicating the potential importance of UI in not only providing income but also facilitating investments in skills.JEL-Code: I230, J640, J650, I380, H530.

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Section: Postsecondary and Labor Market Policies Affecting Enrollmentmentioning

confidence: 99%

Out of work and into school: Labor market policies and college enrollment during the Great Recession

Barr

Turner

2015

Journal of Public Economics

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“…Early studies tended to find that credit constraints were not prevalent (Cameron and Heckman, 1998;Cameron and Taber, 2004;Carneiro and Heckman, 2002;Keane and Wolpin, 2001). However, recent studies have shown borrowing constraints matter for educational investment (Belley and Lochner, 2007;Brown et al, 2012;Cowan, 2016;Lovenheim, 2011;Stinebrickner and Stinebrickner, 2008) .…”

Section: Credit Constraintsmentioning

confidence: 99%

Born Under a Lucky Star: Financial Aid, College Completion, Labor Supply, and Credit Constraints

Denning

2017

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Higher education has experienced many changes since the 1970s, including an increase in the price of college, an increase in student employment during college, a decrease in college completion rates, and an increase in time to degree. This paper ties these trends together by causally linking changes in financial aid with time to degree and student employment during college. I find that additional financial aid accelerates graduation for university seniors because they increase credits attempted and reduce earnings while in college. In reaching this finding, I use administrative education and earnings data to examine a discrete change in the amount of federal financial aid available to financially independent students. The estimates in this paper imply that roughly 50 percent of the observed increase in time to degree can be explained by changes in tuition. JEL Classification Codes: I22, D14, H52Key Words: financial aid, labor supply, college completion Acknowledgments:The author would like to thank the Texas Higher Education Coordinating Board and Texas Workforce Commission for providing the data. I also thank Jason Abrevaya, Andrew Barr, Sandra Black, Brian Jacob AbstractHigher education has experienced many changes since the 1970s, including an increase in the price of college, an increase in student employment during college, a decrease in college completion rates, and an increase in time to degree. This paper ties these trends together by causally linking changes in financial aid with time to degree and student employment during college. I find that additional financial aid accelerates graduation for university seniors because they increase credits attempted and reduce earnings while in college. In reaching this finding, I use administrative education and earnings data to examine a discrete change in the amount of federal financial aid available to financially independent students. The estimates in this paper imply that roughly 50 percent of the observed increase in time to degree can be explained by changes in tuition.

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“…Lovenheim (2011) …nds that households used their housing wealth to …nance postsecondary enrollment in the 2000s when housing wealth was most liquid. This …nding implies that the recent housing bust could signi…cantly a¤ect college enrollment through the reduction in housing wealth of families with college-age children.…”

Section: Introductionmentioning

confidence: 99%

Academic Performance and the Great Recession

Adamopoulou

Tanzi

2014

SSRN Journal

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Abstract. In this paper we study how the Great Recession a¤ected university students in terms of performance, with a special focus on the dropout probability.To do so, we use individual-level data on a representative sample of university students in Italy in 2007 and 2011. We measure the severity of the recession in terms of increases in adult and youth unemployment rate and we exploit geographical variation to achieve identi…cation. On the one hand, an increase in adult male unemployment rate deteriorates the …nancial condition of the family, raising the dropout probability. On the other hand, by reducing the opportunity cost of tertiary education, an increase in youth unemployment rate decreases the dropout probability. Focusing on students who were enrolled at the university before the recession we are able to study the e¤ects of the crisis on performance net from any potential e¤ect on enrollment. We …nd evidence that overall, university dropout decreased as a result of the Great Recession and that the probability of on-time graduation increased for more motivated students. The e¤ects, however, are considerably heterogeneous across gender and other socio-economic indicators.JEL classi…cations: D12, E32, J24

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The Effect of Liquid Housing Wealth on College Enrollment

Cited by 214 publications

References 17 publications

Out of work and into school: Labor market policies and college enrollment during the Great Recession

Out of work and into school: Labor market policies and college enrollment during the Great Recession

Born Under a Lucky Star: Financial Aid, College Completion, Labor Supply, and Credit Constraints

Academic Performance and the Great Recession

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