Housing Wealth, Credit Availability, and College Enrollment
33 Pages Posted: 14 Sep 2014 Last revised: 5 Nov 2015
Date Written: October 26, 2015
Household wealth and liquidity are key factors in individuals' college enrollment choices. Therefore we investigate the impact of housing wealth, credit availability and financial distress on college enrollment decisions. We find that housing wealth is negatively related to enrollment in public schools and positively related to enrollment in private schools. Thus, this evidence suggests that students choose to substitute away from private schools towards public institutions as housing wealth declines. This is in line with the fact that the cost of attendance is, on average, much lower for public schools than private schools.
Keywords: college enrollment, housing wealth, demand of schooling
JEL Classification: I21, I24, R10, R210
Suggested Citation: Suggested Citation