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Title: The Evidence on Credit Constraints in Post-Secondary Schooling
Resulting in 1 citation.
1. Carneiro, Pedro M.
Heckman, James J.
The Evidence on Credit Constraints in Post-Secondary Schooling
The Economic Journal 112, 482 (October 2002): 705-734
Also: http://netec.mcc.ac.uk/BibEc/data/Articles/ecjeconjlv:112:y:2002:i:482:p:705-734.html
Cohort(s): Children of the NLSY79, NLSY79
Publisher: Royal Economic Society (RES)
Keyword(s): Armed Forces Qualifications Test (AFQT); Cognitive Ability; College Enrollment; Credit/Credit Constraint; Debt/Borrowing; Educational Returns; Family Income; Income; Peabody Individual Achievement Test (PIAT- Math); Schooling; Schooling, Post-secondary

Permission to reprint the abstract has not been received from the publisher.

This paper examines the family income--college enrollment relationship and the evidence on credit constraints in post-secondary schooling. We distinguish short-run liquidity constraints from the long-term factors that promote cognitive and noncognitive ability. Long-run factors crystallized in ability are the major determinants of the family income--schooling relationship, although there is some evidence that up to 4% of the total U.S. population is credit constrained in a short-run sense. Evidence that IV estimates of the returns to schooling exceed OLS estimates is sometimes claimed to support the existence of substantial credit constraints. This argument is critically examined. This article draws on both the NLSY79 and the Children of the NLSY79, utilizing PIAT Math scores from the latter dataset.
Bibliography Citation
Carneiro, Pedro M. and James J. Heckman. "The Evidence on Credit Constraints in Post-Secondary Schooling." The Economic Journal 112, 482 (October 2002): 705-734.