Post-Secondary Attendance by Parental Income in the U.S. and Canada: What Role for Financial Aid Policy?
Philippe Belley,
Marc Frenette and
Lance Lochner
No 17218, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
This paper examines the implications of tuition and need-based financial aid policies for family income - post-secondary (PS) attendance relationships. We first conduct a parallel empirical analysis of the effects of parental income on PS attendance for recent high school cohorts in both the U.S. and Canada using data from the 1997 Cohort of the National Longitudinal Survey of Youth and Youth in Transition Survey. We estimate substantially smaller PS attendance gaps by parental income in Canada relative to the U.S., even after controlling for family background, adolescent cognitive achievement, and local residence fixed effects. We next document that U.S. public tuition and financial aid policies are actually more generous to low-income youth than are Canadian policies. By contrast, Canada offers more generous aid to middle-class youth than does the U.S. These findings suggest that the much stronger family income - PS attendance relationship in the U.S. is not driven by differences in the need-based nature of financial aid policies. Based on previous estimates of the effects of tuition and aid on PS attendance, we consider how much stronger income - attendance relationships would be in the absence of need-based aid and how much additional aid would need to be offered to lower income families to eliminate existing income - attendance gaps entirely.
JEL-codes: H52 I21 I28 (search for similar items in EconPapers)
Date: 2011-07
New Economics Papers: this item is included in nep-edu and nep-lab
Note: ED LS PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)
Published as Post-secondary attendance by parental income in the U.S. and Canada: Do financial aid policies explain the differences? Philippe Belley1,*, Marc Frenette2 andLance Lochner3 Canadian Journal of Economics/Revue canadienne d'économique Volume 47, Issue 2, pages 664–696, May/mai 2014
Downloads: (external link)
http://www.nber.org/papers/w17218.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:17218
Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w17218
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().