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ANALYZING POSTSECONDARY RETURNS: DOES EDUCATIONAL LOAN DEFAULT PLAY A ROLE?
Author(s) -
Boyd Laura A.
Publication year - 1995
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1995.tb00734.x
Subject(s) - earnings , loan , vocational education , economics , postsecondary education , actuarial science , student loan , set (abstract data type) , business , demographic economics , higher education , finance , economic growth , computer science , programming language
The economic benefits of a traditional college education relative to a high school degree are well known to students and economists alike. However, little is known about the economic returns associated with associate and vocational degrees. Using a large micro‐data set of former guaranteed student loan borrowers, this paper analyzes post‐schooling returns for bachelors as well as associates and vocational students. The analysis further extends the existing literature by controlling for individual characteristics that income studies typically do not measure. By including the default status of the educational loan used to finance the postsecondary education, the intrinsic individual characteristics of commitment and initiative are controlled for and are found to significantly increase earnings.