Year: 2019
Type: article
Study design: Observational Study
Abstract: We estimate the effect of student loan debt on subsequent homeownership in a uniquely constructed administrative data set for a nationally representative cohort. We instrument for the amount of individual student debt using changes to the in-state tuition rate at public 4-year colleges in the student’s home state. A $1,000 increase in student loan debt lowers the homeownership rate by about 1.8 percentage points for public 4-year college-goers during their mid-20s, equivalent to an average delay of about 4 months in attaining homeownership. Validity tests suggest the results are not confounded by local economic conditions or changes in educational outcomes.
Source: Journal of Labor Economics
DOI: 10.1086/704609
Institution: Federal Reserve Board of Governors
Language: English
Topic: Housing Market and Economics
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Quality education
Open Access status: hybrid
OpenAlex ID: W3125830129