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

Journal article
Authors Buly A. Cardak
Joseph Vecci
Published in Oxford Bulletin of Economics and Statistics
Volume 78
Issue 3
Pages 323-346
ISSN 03059049
Publication year 2016
Published at
Pages 323-346
Language en
Subject categories Educational Sciences

Abstract

© 2015 The Department of Economics, University of Oxford and John Wiley & Sons Ltd.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.

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