Women pay their way on income contingent student debt

Abstract

Does the gender pay gap affect women’s ability to repay their student debt? This study investigates the extent to which an income contingent scheme benefits women because of their individual earnings. Using the Australian Household, Income, and Labour Dynamics in Australia Survey, gender differences in debt repayment behaviour over the past two decades was examined. The regression model comprised interaction terms including risk-averse, low socio-economic status, low wealth and low income. The industries where the majority of women are employed – education and health – were also examined. It was found that over 2002–2014, women generally had less student debt than men, but those who were low income carried more debt. This is the first study to include an analysis of student debt by industry through a gender lens. Given the increasing amount of student debt Australians are carrying, it is important for policymakers to pay attention to its effects to ensure fairness and equity.