Predicting the Impact of Savings on Educational Outcomes
Jaehyun Nam, Columbia University
The aim of this study is to predict the impact of parental savings on their children’s educational outcomes. The study used data from the National Longitudinal Survey of Youth 1997. Using regression adjusted propensity score estimates, this study found that, compared to what would happen if parents had not held savings for their children’s future education, children with parents who were holding savings increase post-secondary AA and BA graduation rates by 21% and 22% of likelihood, respectively.