Adam Isen, U.S. Department of the Treasury
Adam Isen, U.S. Department of the Treasury
Parental Resources and College Attendance: Evidence from Lottery Wins
Parental Resources and College Attendance: Evidence from Lottery Wins
06 Mar 20191:30 PM – 3:00 PM
Faculty and doctoral students only
We examine 1.5 million children whose parents won the lottery to trace out the effect
of financial resources on college attendance. The analysis leverages federal tax and
financial aid records and substantial variation in win size and timing. While per-dollar
effects are modest, the relationship is weakly concave, with a high upper bound for
amounts greatly exceeding college costs. Effects are smaller among low-SES households,
not sensitive to how early in adolescence the shock occurs, and not moderated by financial
aid crowd-out. The results imply that households derive consumption value from college
and financial constraints alone do not inhibit attendance.
Location:
Cumnock 230
Organizer:
We examine 1.5 million children whose parents won the lottery to trace out the effect of financial resources on college attendance. The analysis leverages federal tax and financial aid records and substantial variation in win size and timing. While per-dollar effects are modest, the relationship is weakly concave, with a high upper bound for amounts greatly exceeding college costs. Effects are smaller among low-SES households, not sensitive to how early in adolescence the shock occurs, and not moderated by financial aid crowd-out. The results imply that households derive consumption value from college and financial constraints alone do not inhibit attendance.