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Title: Student Debt, Income-based Repayment, and Self-employment: Evidence from NLSY 1997 and NFCS 2015
Resulting in 1 citation.
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Devaraj, Srikant Patel, Pankaj C. |
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Student Debt, Income-based Repayment, and Self-employment: Evidence from NLSY 1997 and NFCS 2015 Applied Economics published online (10 February 2020): DOI: 10.1080/00036846.2020.1722795. Also: https://www.tandfonline.com/doi/full/10.1080/00036846.2020.1722795 Cohort(s): NLSY97 Publisher: Taylor & Francis Keyword(s): Debt/Borrowing; Labor Market Outcomes; Propensity Scores; Self-Employed Workers; Student Loans / Student Aid Based on the income-risk hypothesis, we test whether those with higher student debt are less likely to be self-employed. We also test if the income-based repayment programme increases the odds of self-employment. Using a longitudinal sample of 6,762 participants (1998-2011) in National Longitudinal Survey of Youth 1997 (NLSY97) and propensity score matching, we find that having student debt decreases the odds of self-employment by 1.3 percentage points. Further, using eligibility for income-based repayment programme as an instrument driving effect of loans in NLSY97 sample or use of income-based repayment plans in National Financial Capability Study 2015 increases the odds of self-employment of about 2 percent. The effect sizes are smaller than previous studies on student loans on labour market outcomes. |
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Bibliography Citation
Devaraj, Srikant and Pankaj C. Patel. "Student Debt, Income-based Repayment, and Self-employment: Evidence from NLSY 1997 and NFCS 2015." Applied Economics published online (10 February 2020): DOI: 10.1080/00036846.2020.1722795.
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