Cash-on-Hand & College Enrollment: Evidence from Population Tax Data and Policy Nonlinearities

56 Pages Posted: 25 Jan 2014

See all articles by Dayanand Manoli

Dayanand Manoli

University of California, Los Angeles (UCLA) - Department of Economics

Nick Turner

Board of Governors of the Federal Reserve System

Date Written: January 2014

Abstract

We estimate causal effects of cash-on-hand on college enrollment decisions of students from low-income families. Using population-level, administrative data from United States income tax returns, we exploit variation in tax refunds received in the spring of the high school senior year. The variation in tax refunds results from the kink point between the phase-in and maximum credit portions of the Earned Income Tax Credit schedule. The results suggest tax refunds received in the spring of the high school senior year have meaningful effects on college enrollment.

Suggested Citation

Manoli, Dayanand and Turner, Nick, Cash-on-Hand & College Enrollment: Evidence from Population Tax Data and Policy Nonlinearities (January 2014). NBER Working Paper No. w19836. Available at SSRN: https://ssrn.com/abstract=2384294

Dayanand Manoli (Contact Author)

University of California, Los Angeles (UCLA) - Department of Economics ( email )

8283 Bunche Hall
Los Angeles, CA 90095-1477
United States

Nick Turner

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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