I have been trying to understand how to setup a panel on youth college financing, particularly a monthly panel as the yearly panel cannot give information on youth co-residence, at least I don’t think it can. Also, because the results were rubbish it is important to get the work right.
I ran into a job market paper (chapter 3) discussing almost exactly the same research but instead controls for different variables. I take into consideration family aid, grants and GPA.
I am still unsure about the estimation design using NLYS97. In particular, in Kaplan (2012) the discussion on sample design notes that co-residency question ends in 2002, at which point none of the cohorts from the survey were eligible to enter college. To replace this between 2003 and 2011 the respondents give the date of their first time moving out and first time they moved back with their parents. All these spells had to be at least three months, as noted by the question given to respondents. However, once I used these variables and followed a person for 1 year from their graduation I got incredibly imprecise results. I got no conclusions. Partly I think it’s due to the fact the once you restrict the data to a subset of college graduates you do end up with a lot of skipped responses (for valid reasons) coupled with plain missing values. Now with a better understanding of the survey I can formulate a proper panel, yearly or monthly depending on what I can actually use. It is a little difficult dealing with semester or term based variables (which are my main concern). I have to make assumption about the type of schools to make the work doable and efficient.
The job market paper is interesting. Isolating to just the effects of parental co-residence and student loans, one sees similar results to the papers discussed in the last post. What this says about using parents to smoothing consumption choices isn’t clear. Part of that is a discussion of expectations and human capital. Though the empirical evidence can be seen as an explanation of debt aversiveness or response to new budget constraints, which aren’t totally mutually exclusive from the argument of smoothing yet.