Educational debt burden and career choice

Educational debt burden and career choice
By:Erica Marie Field,National Bureau of Economic Research
Published on 2006 by

|This paper examines the influence of educational debt aversion on the career choice of law school students, including the decision to attend law school and the decision to work in public interest law. To isolate the role of debt aversion, I analyze experimental data from NYU Law School's Innovative Financial Aid Study in which two career-contingent financial aid packages were randomly assigned to participating admits. Because the packages had equivalent monetary value and differed only in the duration of indebtedness, differences in career choices associated with financial aid assignment can be attributed to psychological debt aversion. The results indicate that debt aversion matters: In classes for which the lottery was announced prior to enrollment, participants randomly assigned to the low-debt package are nearly twice as likely to enroll. In classes without selective matriculation, lottery winners have a 36-45% higher rate of first job placement in public interest law. Both results are consistent with a simple model of debt aversion in which psychic costs of holding debt during and after school generate differences in the discounted lifetime utility of the financial aid packages and, hence, in the value of attending law school and of working in public interest law|--National Bureau of Economic Research web site.

This Book was ranked at 21 by Google Books for keyword Careers.

Book ID of Educational debt burden and career choice's Books is C107AQAAIAAJ, Book which was written byErica Marie Field,National Bureau of Economic Researchhave ETAG "aAdcqY2b/E0"

Book which was published by since 2006 have ISBNs, ISBN 13 Code is and ISBN 10 Code is

Reading Mode in Text Status is false and Reading Mode in Image Status is false

Book which have "37 Pages" is Printed at BOOK under CategoryLaw

This Book was rated by Raters and have average rate at ""

This eBook Maturity (Adult Book) status is NOT_MATURE

Book was written in en

eBook Version Availability Status at PDF is falseand in ePub is false

Book Preview