Decades of economic research have demonstrated the merits of human capital theory; higher
levels of education are associated with more favorable labor market outcomes on all points on the
educational spectrum. Yet relatively few welfare recipients attend college while on aid and there are
several reasons for this. First, the at-risk pool for enrollment is limited in that in any given year, 57
percent of welfare recipients in the NLSY had completed a high school diploma or GED. Further,
attendance is costly; paying for tuition and other course materials may be prohibitive for this very
low-income population. Having children also adds to the cost of attending school if special child
care arrangements must be made while the mother is in class and studying. Once enrolled, the extra
demands of having children may make school completion more difficult for these students. Beyond
these direct costs, the opportunity costs associated with attending school may be prohibitive.