Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284096 
Year of Publication: 
2023
Series/Report no.: 
Working Papers No. 23-19
Publisher: 
Federal Reserve Bank of Boston, Boston, MA
Abstract: 
This study assesses the impact of involuntary job loss on college persistence by leveraging different job-loss timings relative to a student's college enrollment decision. We find that job loss increases the probability that a working college student leaves college before attaining a degree, but access to short-term credit through credit card loans buffers this liquidity effect. By restricting credit supply to college students, the CARD Act of 2009 has inadvertently inhibited the ability of liquidity-constrained students to remain in college when their earnings unexpectedly fall, resulting in a stronger liquidity effect of job loss on college persistence over the last decade.
Subjects: 
Credit card loans
unemployment
college persistence
JEL: 
I22
I23
J64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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