Graduates, Dropouts and Slow Finishers: The Effects of Credit Constraints on University Outcomes

24 Pages Posted: 26 Apr 2016

See all articles by Buly A. Cardak

Buly A. Cardak

La Trobe University - School of Economics

Joe Vecci

Gothenburg University

Multiple version iconThere are 2 versions of this paper

Date Written: June 2016

Abstract

The effect of credit constraints on university outcomes is studied. Credit constraints have a negative relationship with dropout, especially on lower achieving high school graduates. Credit constrained students with strong high school achievement are 13–15% more (less) likely to graduate (be slow finishers) relative to otherwise similar students who are potentially or unlikely constrained. Using competing risk analysis, we find dropout is most likely in the first year of study and falls over time for all students. After 3 years of study, the risk of dropout increases for students who are constrained suggesting constraints may eventually bind on these students.

Suggested Citation

Cardak, Buly and Vecci, Joe, Graduates, Dropouts and Slow Finishers: The Effects of Credit Constraints on University Outcomes (June 2016). Oxford Bulletin of Economics and Statistics, Vol. 78, Issue 3, pp. 323-346, 2016, Available at SSRN: https://ssrn.com/abstract=2770177 or http://dx.doi.org/10.1111/obes.12119

Buly Cardak (Contact Author)

La Trobe University - School of Economics ( email )

Bundoora
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Australia
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Joe Vecci

Gothenburg University ( email )

Sweden
767851248 (Phone)

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