Credit Access and College Enrollment∗
نویسنده
چکیده
Does access to credit explain the gap in schooling attainment between children from richer and poorer families? I present new evidence on this important question using two college tuition loans in Chile. Both programs offer loans to students who score above a threshold on the national college admission test, enabling a regression discontinuity design. I find that loan access implies an increase of nearly 20 percentage points in enrollment in the first, second and third year of college, representing relative increases of 100%, 200% and 400%, respectively. More importantly, access to loans effectively eliminates the family income gradient in enrollment. JEL Codes: I22, I24, I28, O1
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