Post-Secondary Attendance by Parental Income in the US and Canada: Do Financial Aid Policies Explain the Differences?

Post-Secondary Attendance by Parental Income in the US and Canada: Do Financial Aid Policies Explain the Differences?

Post-Secondary Attendance by Parental Income in the US and Canada: Do Financial Aid Policies Explain the Differences?

Post-Secondary Attendance by Parental Income in the US and Canada: Do Financial Aid Policies Explain the Differences?s

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Référence bibliographique [17687]

Belley, Philippe, Frenette, Marc et Lochner, Lance. 2014. «Post-Secondary Attendance by Parental Income in the US and Canada: Do Financial Aid Policies Explain the Differences? ». Revue canadienne d’économique / Canadian Journal of Economics, vol. 47, no 2, p. 664-696.

Fiche synthèse

1. Objectifs


Intentions :
«This paper considers whether differences in tuition and the overall structure of needs-based aid policies between Canada and the United States can help explain important differences in the relationship between parental income and PS [post-secondary] attendance in these countries.» (p. 666)

2. Méthode


Échantillon/Matériau :
«Our main empirical analysis uses data from the NLSY97 [Cohort of the National Longitudinal Survey of Youth] and YITS [Youth in Transition Survey], focusing on educational attainment as of age 21. The NLSY97 samples American youth ages 12 to 16 at the beginning of 1997, while YITS surveys Canadian youth age 15 at the start of 2000.» (p. 668) «Our data sources also contain a rich set of family background measures.» (p. 669)

Type de traitement des données :
Analyse statistique

3. Résumé


«Our findings suggest [limited intergenerational mobility] is more pronounced in the U.S. [United States] than in Canada. In particular, we show that PS attendance rates among recent cohorts are more strongly related to parental income in the U.S. than in Canada, even after controlling for similar measures of family background, adolescent cognitive achievement and local area of residence fixed effects.» (p. 693) Les auteurs remarquent certains rapprochements entre le Québec et les États-Unis. «Implicit tax rates on parental income above the exemption level are modest but cover a broad range of incomes for the U.S. and Quebec, whereas in other Canadian provinces, implicit tax rates on non-exempt income are higher but apply only to families earning above $55,000 (slightly below the median family income for our YITS sample).» (p. 683) «Quebec is also quite generous due to its emphasis on grants over loans. Indeed, net tuition as a function of family income is remarkably similar for Quebec (students living away from their parents) and low tuition states in the U.S.» (p. 687)