CSRDA Discussion Paper Series

No. 23 The Effects of Student Loans on Men’s Career Decisions
Risa Hagiwara
Student loansCareer decision
Goal 1: No PovertyGoal 4: Quality Education
Japan Household Panel Survey

This paper aims to evaluate the Japan Student Services Organization (JASSO) loan systems in terms of career decisions through a structural estimation method that calculates the utility level in each life stage. From the results, there is almost no difference between borrowers with regular employment and borrowers with non-regular employment in the comparison between fixed-rate loans (FLs) and income-contingent loans (ICLs). On the other hand, for borrowers remaining at home, the utility level in the ICL case is higher than that in the FL case. Because the ICL is kind to borrowers with difficulty in repayment, the utility level of borrowers remaining at home in the ICL case is higher than that in the FL case.