Tuition, Debt, and Human Capital

Rajashri Chakrabarti, Vyacheslav Fos, Andres Liberman, Constantine Yannelis and Tarun Ramadorai

The Review of Financial Studies, 2023, vol. 36, issue 4, 1667-1702

Abstract: This paper investigates the effects of college tuition on student debt and human capital accumulation. We exploit data from a random sample of undergraduate students in the United States and implement a research design that instruments for realized tuition with relatively large changes to the advertised tuition of students who enrolled at the same school in different cohorts. We find that $5,000 in higher tuition causally reduces the probability of graduating with a graduate degree by 3.1 percentage points and increases student debt by $1,480. Higher tuition also leads to a decline in mortgage balances and an increase in credit card delinquencies.Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

JEL-codes: D14 H52 H81 I23 J24 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Working Paper: Tuition, Debt, and Human Capital (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:oup:rfinst:v:36:y:2023:i:4:p:1667-1702.

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