The impact of parental layoff on higher education investment

Pan, Weixiang; Ost, Ben

doi:10.1016/j.econedurev.2014.06.006

Cited by 31 publications

(43 citation statements)

References 13 publications

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“…Yet, a 2010 study by Heckman and Lafontaine found a steady decline in the high school graduation rates in the US since 1970s [57]. Social and economic changes in the past decade, and especially the economic crisis of 2007 all likely impacted financial access to education [58,59]. Other social and institutional factors such as the quality of school programs and the ability of these programs to meet the student needs have also been shown to be associated with school completion [60] and may have changed over the years.…”

Section: Discussionmentioning

confidence: 99%

Long-term effects of mental disorders on educational attainment in the National Comorbidity Survey ten-year follow-up

Mojtabai

Stuart

Hwang

et al. 2015

Soc Psychiatry Psychiatr Epidemiol

173

112

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Purpose The study sought to examine the association of mental disorders with educational attainment in a community sample. Methods Data were from 5,001 respondents aged 15–54 in the 1990–1992 National Comorbidity Survey (NCS), re-interviewed in the 2001–2003 NCS follow-up (NCS-2). Discrete-time survival analysis was used to examine the association of disorders present at baseline (NCS) or having first onset after the baseline (assessed in NCS-2) with educational outcomes among 3,954 eligible respondents. Mental disorders were categorized into internalizing fear disorders (simple phobia, social phobia, panic disorder with/without agoraphobia and agoraphobia without panic disorder), internalizing anxiety-misery disorders (major depressive disorder, generalized anxiety disorder and post-traumatic stress disorder), externalizing disorders (alcohol and drug use disorders, conduct disorder) and bipolar disorder. Analyses were conducted separately in students and non-students at baseline. Results Among students, baseline bipolar and externalizing disorders, and fear, anxiety-misery and externalizing disorders with onset after baseline were associated with lower odds of high school graduation; baseline anxiety-misery disorders with lower odds of going to college; and baseline externalizing disorders and bipolar disorder with onset after baseline with lower odds of college graduation. Among non-students, baseline fear disorders were associated with lower odds of high school graduation and bipolar disorder with lower odds of going to college. Assuming that the regression coefficients represent causal effects, mental disorders accounted for 5.8–11.0% of high school and 3.2–11.4% of college non-completion. Conclusions Expanding access to mental health services for youth might have a net positive societal value by helping to prevent some of these adverse educational outcomes.

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Section: Discussionmentioning

confidence: 99%

Long-term effects of mental disorders on educational attainment in the National Comorbidity Survey ten-year follow-up

Mojtabai

Stuart

Hwang

et al. 2015

Soc Psychiatry Psychiatr Epidemiol

173

112

View full text Add to dashboard Cite

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“…These variables include adjusted gross income (AGI), marital status, residential location, and various taxes paid and rebates received. The data 7 Pan and Ost (2014) report effects on college enrollment of 10 percentage points, which is over 20 times larger than effects I estimate here. Their estimates are not robust to controlling for family fixed effects ( Table 2, column 5), consistent with my findings below of unobserved selection into year of layoff and cohort trends in college enrollment.…”

Section: A Variables and Sample Restrictionsmentioning

confidence: 92%

“…4 Time-of-event variation, as opposed to time-of-outcome variation, is widely applied in empirical studies to detect selection problems with cross-sectional estimators (e.g., Mayer 1997; Hurst and Lusardi 2004;Oreopoulos, Page, and Stevens 2005;Rothstein 2010;Coelli 2010;Rege, Telle, and Votruba 2011). Less frequently, researchers exploit time-of-event variation to estimate treatment effects (Grogger 1995;Hoynes, Schanzenbach, and Almond 2012;Pan and Ost 2014). Margolis 1999), and it suggests caution in the use of firm closure as an instrument when outcome variables cannot be observed prior to treatment.…”

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confidence: 98%

“…Pan and Ost (2014) exploit age-at-layoff variation in the PSID rather than firm closures, but lack a control group to remove the substantial selection problems with this approach that I document here. 7 This paper also contributes to a large literature on the role of parental income and wealth in human capital investments (e.g., Becker 1967), especially in late childhood.…”

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confidence: 98%

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Parental Job Loss and Children's Long-Term Outcomes: Evidence from 7 Million Fathers' Layoffs

Hilger

2016

American Economic Journal: Applied Economics

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How do parental layoffs and their large attendant income losses affect children's long-term outcomes? This question has proven difficult to answer due to the endogeneity of parental layoffs. I overcome this problem by exploiting the timing of 7 million fathers' layoffs when children are age 12–29 in administrative data for the United States. Layoffs dramatically reduce family income but only slightly reduce college enrollment, college quality, and early career earnings. These effects are consistent with a weak estimated propensity to spend on college out of marginal parental income. I find that larger effects based on firm closures stem from selection. (JEL I23, I24, I26, J13, J22, J31, J63)

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“…Furthermore, in the junior year, low-income households may be myopic and not anticipate financial needs for college decisions in the senior year, so they may not save cash-on-hand from the 33 Earlier quasi-experimental studies have exploited a variety of sources of variation in family income for identification. Examples of sources of variation include oil booms (Løken 2010), casino winnings (Akee et al 2010), home price fluctuations (Lovenheim 2011), and job loss (Coelli 2011 andPan andOst 2014). Bastian and Michelmore (2015) exploit variation in EITC benefits from federal and state EITC expansions from the 1970s onward.…”

Section: Discussionmentioning

confidence: 99%

Cash-on-Hand and College Enrollment: Evidence from Population Tax Data and the Earned Income Tax Credit

Manoli

Turner

2018

American Economic Journal: Economic Policy

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H ow does cash-on-hand affect college enrollment decisions? A significant body of prior research has examined the impacts of family income on college enrollment (discussed more below), but it is unclear if cash transfers in the spring of the high school senior year, a time when many students are finalizing their college enrollment decisions, can also impact enrollment. On the one hand, students may face up-front, out-of-pocket costs that represent a barrier to entry for students from low-income families. In this case, additional cash-on-hand at the time of college enrollment decisions may have positive impacts on college attendance. On the other hand, college preparedness and preferences for college enrollment may be entirely determined prior to spring of the high school senior year. In this case, additional cash-on-hand at the time when students and families make college enrollment decisions may have no impact on these decisions. Quantifying the causal effects of cash-on-hand is challenging because cash-on-hand at the time of college enrollment decisions can be correlated with longer term disadvantages that leave students less academically qualified for college.In this paper, we implement a novel research design to estimate the effects of cash-on-hand on college enrollment decisions. We exploit quasi-experimental variation in tax refunds received during the spring of the high school senior year. The

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The impact of parental layoff on higher education investment

Cited by 31 publications

References 13 publications

Long-term effects of mental disorders on educational attainment in the National Comorbidity Survey ten-year follow-up

Long-term effects of mental disorders on educational attainment in the National Comorbidity Survey ten-year follow-up

Parental Job Loss and Children's Long-Term Outcomes: Evidence from 7 Million Fathers' Layoffs

Cash-on-Hand and College Enrollment: Evidence from Population Tax Data and the Earned Income Tax Credit

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