Parental Resources and College Attendance: Evidence from Lottery Wins

55 Pages Posted: 26 Sep 2016 Last revised: 6 Dec 2020

See all articles by George Bulman

George Bulman

University of California, Santa Cruz - Department of Economics

Robert W. Fairlie

University of California, Santa Cruz - Department of Economics; National Bureau of Economic Research

Sarena Goodman

Board of Governors of the Federal Reserve System

Adam Isen

U.S. Department of the Treasury, Office of Tax Analysis (OTA)

Multiple version iconThere are 3 versions of this paper

Date Written: September 2016

Abstract

We examine U.S. 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 household financial constraints alone do not inhibit attendance.

Suggested Citation

Bulman, George and Fairlie, Robert W. and Goodman, Sarena and Isen, Adam, Parental Resources and College Attendance: Evidence from Lottery Wins (September 2016). NBER Working Paper No. w22679, Available at SSRN: https://ssrn.com/abstract=2843412

George Bulman (Contact Author)

University of California, Santa Cruz - Department of Economics ( email )

Santa Cruz, CA 95064
United States

Robert W. Fairlie

University of California, Santa Cruz - Department of Economics ( email )

Department of Economics
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Santa Cruz, CA 95064
United States
831-459-3332 (Phone)

HOME PAGE: http://people.ucsc.edu/~rfairlie/

National Bureau of Economic Research ( email )

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HOME PAGE: http://www.nber.org/people/robert_fairlie?page=1&perPage=50

Sarena Goodman

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Adam Isen

U.S. Department of the Treasury, Office of Tax Analysis (OTA) ( email )

1500 Pennsylvania Ave., N.W.
Washington, DC 22203
United States

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