 Tuition, Debt, and Human CapitalRajashri Chakrabarti, Vyacheslav Fos (), Andres Liberman and Constantine Yannelis No 912, Staff Reports from Federal Reserve Bank of New York 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 tuition with relatively large changes to the tuition of students who enrolled at the same school in different cohorts. We find that $10,000 in higher tuition causally reduces the probability of graduating with a graduate degree by 6.2 percentage points and increases student debt by $2,961. Higher tuition also reduces the probability of obtaining an undergraduate degree among poorer, credit-constrained students. Thus, the relatively large increases in the price of education in the United States in the past decade can affect the accumulation of human capital. Keywords: human capital; credit constraints; tuition; student debt (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fip:fednsr:87439 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in Staff Reports from Federal Reserve Bank of New York Contact information at EDIRC. |
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