The decision to enroll in college while on aid can be characterized as follows:
(1) Ei = F(Xi Ai, Ci, Ti),
6
where Ei indicates college enrollment, Xi is a matrix of individual characteristics, Ai is a matrix of
variables indicating access to colleges in the county, Ci is a matrix of variables indicating potential
opportunity costs for enrolling in school while on aid, and Ti is a matrix of taste for education
variables. The subscript i indexes the person-spell–a period of consecutive months of welfare
receipt. Included in the matrix X are age, race or ethnicity, number of own children under age 18,
whether the youngest child is under age 5, and marital status. Access to school is measured using
data on the number of schools and enrollments in the respondent's county of residence (see the Data
section for a more detailed discussion). Opportunity costs for attending college are characterized in
two ways. First, employment opportunity (or lack thereof) is proxied using the county
unemployment rate. Second, the state's maximum AFDC benefit level for a family of three is
included as a measure of the employment alternative. Those in higher benefit states may be more
likely to take advantage of their time on aid to attend school. In most states, employment results in
greater income than welfare receipt alone. But in higher benefit states, the difference between
potential earnings and welfare benefits is smaller. Taste for education can be characterized using
both family history of higher education–in this case the respondent's mother's highest grade
completed–and respondent's aptitude as measured by the percentile score on the Armed Forces
Qualifying Test (AFQT), which was administered to NLSY respondents in 1980. Also included is a
measure of parental occupation because it is possible that the children of adults with certain types of
occupations, even if they do not require advanced degrees, might be more likely to attend college.
Logistic regression is used to estimate the determinants of welfare recipients’ college enrollment.
The decision to enroll in college while on aid can be characterized as follows:(1) Ei = F(Xi Ai, Ci, Ti),6where Ei indicates college enrollment, Xi is a matrix of individual characteristics, Ai is a matrix ofvariables indicating access to colleges in the county, Ci is a matrix of variables indicating potentialopportunity costs for enrolling in school while on aid, and Ti is a matrix of taste for educationvariables. The subscript i indexes the person-spell–a period of consecutive months of welfarereceipt. Included in the matrix X are age, race or ethnicity, number of own children under age 18,whether the youngest child is under age 5, and marital status. Access to school is measured usingdata on the number of schools and enrollments in the respondent's county of residence (see the Datasection for a more detailed discussion). Opportunity costs for attending college are characterized intwo ways. First, employment opportunity (or lack thereof) is proxied using the countyunemployment rate. Second, the state's maximum AFDC benefit level for a family of three isincluded as a measure of the employment alternative. Those in higher benefit states may be morelikely to take advantage of their time on aid to attend school. In most states, employment results ingreater income than welfare receipt alone. But in higher benefit states, the difference betweenpotential earnings and welfare benefits is smaller. Taste for education can be characterized usingboth family history of higher education–in this case the respondent's mother's highest gradecompleted–and respondent's aptitude as measured by the percentile score on the Armed ForcesQualifying Test (AFQT), which was administered to NLSY respondents in 1980. Also included is ameasure of parental occupation because it is possible that the children of adults with certain types ofoccupations, even if they do not require advanced degrees, might be more likely to attend college.Logistic regression is used to estimate the determinants of welfare recipients’ college enrollment.
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