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The effects of credit on high school graduation: Evidence from U.S. bank branching deregulation

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  • Reilly, Patrick A.

Abstract

Credit markets affect the real economy in multiple ways. This paper utilizes variation in the timing of bank branching deregulation of 39 states between 1970 and 1994 as an exogenous proxy of credit availability to analyze the link between credit markets and educational outcomes. Using CPS data to estimate reduced form models, results indicate a one percentage point increase in the likelihood of graduating high school after bank branching deregulation. Results also suggest heterogeneity of effects over race. The main findings are robust to placebo tests using false deregulation dates.

Suggested Citation

  • Reilly, Patrick A., 2020. "The effects of credit on high school graduation: Evidence from U.S. bank branching deregulation," The Quarterly Review of Economics and Finance, Elsevier, vol. 75(C), pages 109-119.
    • Handle: RePEc:eee:quaeco:v:75:y:2020:i:c:p:109-119
    DOI: 10.1016/j.qref.2019.05.012
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    More about this item

    Keywords

    Bank branching deregulation; Credit availability; High school graduation;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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