Credit Constraints and Human Capital Investment in College Education

TitleCredit Constraints and Human Capital Investment in College Education
Publication TypeJournal Article
Year of Publication2008
AuthorsCao, H
JournalJournal of Family and Economic Issues
Call Numbernewpubs20080411_CaoJFEI.pdf
KeywordsDemographics, Income, Net Worth and Assets

Using data from the Health and Retirement Study 2001 Human Capital Investment Survey, this article examines the impact of credit market constraints on investment in college education. The effect of family income on college attendance may not be as big as perceived in some previous studies. The interest rates faced by children from middle families are the lowest in the credit market. The research suggests that various government programs aiming to help children from poor families may be effective, but only at the extensive margin--by improving their access to college education. For those who get into college, underinvestment by students from poor families remains a significant problem.

Endnote Keywords

Education/Income Inequality/Human Capital

Endnote ID


Citation Key7215