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Seminar Series: Sergio Urzua, Assistant Professor, Department of Economics, University of Maryland

Loans for Higher Education: Does the Dream Come True?
When Feb 28, 2014
from 12:00 PM to 01:00 PM
Where 0124B Cole Student Activities Building
Contact Name
Contact Phone 301-405-6403
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About the Talk

This paper analyzes the impact of student loans for higher education on enrollment, dropout decisions, and adult earnings. Specifically, we investigate the State Guaranteed Loan (SGL) program, the largest source of public funding for higher education in Chile. Using longitudinal data from administrative records, we estimate a sequential schooling decision model and compute several treatment effects of interest. We show that the program increases enrollment and reduces dropout rates. However, SGL beneficiaries earn significantly less than non-beneficiaries. We analyze the role of selection and economic incentives of higher education institution to retain students as plausible explanations of this finding.

About the Speaker

Sergio Urzua

Professor Urzúa received his PhD from the University of Chicago in 2007 and his BA from the University of Chile in 2001. He is a Research Faculty at the NBER and a Research Fellow at IZA. His research has focused on the role of cognitive and noncognitive abilities and uncertainty as determinants of schooling decisions, labor market outcomes and social behavior. His research in econometrics is mainly concerned with the estimation of selection models with unobserved heterogeneity. Recently, he has analyzed the effects of early endowments on academic and labor market outcomes. His research agenda includes the evaluation of social programs in developing economies. He teaches in the area of Labor Economics and Econometrics.

Visit Professor Urzua's webpage

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