Post-Secondary Attendance by Parental Income: Comparing the U.S. and Canada

Post-Secondary Attendance by Parental Income: Comparing the U.S. and Canada

Post-Secondary Attendance by Parental Income: Comparing the U.S. and Canada

Post-Secondary Attendance by Parental Income: Comparing the U.S. and Canadas

| Ajouter

Référence bibliographique [953]

Belley, Philippe, Frenette, Marc et Lochner, Lance. 2010. Post-Secondary Attendance by Parental Income: Comparing the U.S. and Canada. London, Ontario: University of Western Ontario, CIBC Human Capital and Productivity Project.

Fiche synthèse

1. Objectifs


Intentions :
« A number of studies document important gaps in post-secondary (PS) attendance by family income and adolescent cognitive achievement in the U.S. (Manski and Wise 1983; Cameron and Heckman 1998, 2001; Ellwood and Kane 2000; Carneiro and Heckman 2002; Belley and Lochner 2007). Frenette (2007) documents similar, though smaller, gaps by income in Canada. » (p. 1) This study seeks to explain these gaps and the difference between the two countries.

2. Méthode


Échantillon/Matériau :
« Our main empirical analysis uses data from the NLSY97 [National Longitudinal Survey of Youth, cohort of 1997] and YITS [Youth in Transition Survey], focusing on educational attainment as of age 21. The NLSY97 samples American youth ages 12-16 at the beginning of 1997, while YITS surveys Canadian youth age 15 at the start of 2000. Youth in both samples made their PS attendance decisions in the early to mid-2000s. Most importantly, NSLY97 and YITS contain comparable measures of adolescent cognitive achievement, parental income during adolescence, and rich measures of family background. » (p. 4-5)

Type de traitement des données :
Analyse statistique

3. Résumé


« This paper makes three contributions to the literature on educational attainment gaps by family income. First, we conduct a parallel empirical analysis of the effects of parental income on post-secondary (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 and adolescent cognitive achievement. Second, we develop an intergenerational schooling choice model that sheds light on the role of four potentially important determinants of the family income - PS attendance gap: (i) borrowing constraints, (ii) a ’consumption value’ of attending PS school, (iii) the earnings structure, and (iv) tuition policies and the structure of financial aid. Third, we document Canada - U.S. differences in financial returns to PS schooling, tuition policy, and financial aid, discussing the extent to which these differences contribute to the stronger family income - attendance relationship in the U.S. Most notably, we document the dependence of both non-repayable financial aid and government student loan access on parental income in both countries. » (résumé)