American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
The Effect of Credit Constraints on the College Drop-Out Decision: A Direct Approach Using a New Panel Study
American Economic Review
vol. 98,
no. 5, December 2008
(pp. 2163–84)
Abstract
A serious difficulty in determining the importance of credit constraints in education arises because standard data sources do not provide a direct way of identifying which students are credit constrained. This paper differentiates itself from previous work by taking a direct approach, made possible by unique longitudinal data from the Berea Panel Study. The results from our study of Berea College students suggest that, while credit constraints likely play an important role in the drop-out decisions of some students, the large majority of attrition of students from low-income families should be primarily attributed to reasons other than credit constraints. (JEL I21, I22)Citation
Stinebrickner, Ralph, and Todd Stinebrickner. 2008. "The Effect of Credit Constraints on the College Drop-Out Decision: A Direct Approach Using a New Panel Study." American Economic Review, 98 (5): 2163–84. DOI: 10.1257/aer.98.5.2163Additional Materials
JEL Classification
- I21 Analysis of Education
- I22 Educational Finance