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Household-Level Education Borrowing Constraints: Evidence Using the College Attendance of the Sisters of Vietnam Draft Avoiders

Andrew W. Horowitz, Jungmin Lee and Julie R. Trivitt

Journal of Human Capital, 2009, vol. 3, issue 3, 197-223

Abstract: Most studies of U.S. education borrowing constraints are based on an individual male household member and find that they have little effect on educational attainment. We argue that the correct unit of analysis is the attainment of all sibling intrahousehold resource rivals. We use the male college attendance return shock associated with Vietnam War conscription risk as a quasi-natural experiment. In credit-constrained households, scarce education resources should shift toward at-risk males and manifest in lower attainment by resource rival sisters. We find significantly lower attendance among rival sisters. Our findings cast doubt on assertions that borrowing constraints do not affect attainment. (c) 2009 by The University of Chicago. All rights reserved.

Date: 2009
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