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Begin New Search Topic Higher Education Content Type Working Paper Publishing Institution Centre for Human Capital and Productivity (CHCP), Western University Publication Year within 10 Years Publication Year within 5 Years Publication Year within 3 Years

1. The Role of Non-Pecuniary Considerations: Location Decisions of College Graduates from Low Income Backgrounds

Author:
Yifan Gong, Todd Stinebrickner, Yuxi Yao, and Ralph Stinebrickner
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Centre for Human Capital and Productivity (CHCP), Western University
Abstract:
We examine the initial post-college geographic location decisions of students from hometowns in the Appalachian region that often lack substantial high-skilled job opportunities, focusing on the role of non-pecuniary considerations. Novel survey questions allow us to measure the full non-pecuniary benefits of each relevant geographic location, in dollar equivalents. A new specification test is designed and implemented to provide evidence about the quality of these non-pecuniary measures. Supplementing perceived location choice probabilities and expectations about pecuniary factors with our new non-pecuniary measures allows a new approach for obtaining a comprehensive understanding of the importance of pecuniary and non-pecuniary factors for location decisions. We compare this approach to alternative expectations-based approaches. We also combine the non-pecuniary measures with realized location and earnings outcomes to characterize inequality in overall welfare.
Topic:
Income Inequality, Welfare, Higher Education, Data, and Location Choice
Political Geography:
North America, United States of America, and Appalachia

2. Innis Lecture: Return on Student Loans in Canada

Author:
Lance Lochner, Qian Liu, and Martin Gervais
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Centre for Human Capital and Productivity (CHCP), Western University
Abstract:
This paper uses new administrative data with detailed borrower information and lengthy repayment histories from the Canada Student Loans Program (CSLP) to measure rates of return on undergraduate student loans. We document substantial heterogeneity in returns based on information available at the time loans were disbursed, including province of residence, field of study, and institution of attendance. Field of study is a particularly important determinant of rates of return, explaining 22% of the variation in predicted returns across borrowers. We explore the implications of this variation for CSLP cross-subsidization across borrowers and potential risk-based loan limits. Given the variation in ex ante predicted returns across borrowers, using all available information at the time of loan disbursement, we study the implications of potential cream-skimming of high-return borrowers by private lenders.
Topic:
Debt, Economics, Investment, Higher Education, and Student Loans
Political Geography:
Canada and North America