Parental Investments in College and Later Cash Transfers

51 Pages Posted: 20 Oct 2012

See all articles by Steven J. Haider

Steven J. Haider

Michigan State University - Department of Economics; IZA Institute of Labor Economics

Kathleen M. McGarry

University of California, Los Angeles (UCLA) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: October 2012

Abstract

The rising cost of college tuition and the accompanying investment parents often make have received considerable attention recently. While classic models in economics make important predictions about the magnitudes of these investments, their distribution across children, and their relationship with later cash transfers, there has been little empirical work examining these predictions, especially with regards to the differential treatment of siblings. Using unique data from a supplement to the Health and Retirement Study, we find that parents typically invest differentially in the schooling of siblings, but we find no evidence that these investments are offset by later cash transfers.

Suggested Citation

Haider, Steven J. and McGarry, Kathleen M., Parental Investments in College and Later Cash Transfers (October 2012). NBER Working Paper No. w18485. Available at SSRN: https://ssrn.com/abstract=2164608

Steven J. Haider (Contact Author)

Michigan State University - Department of Economics ( email )

East Lansing, MI 48824
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Kathleen M. McGarry

University of California, Los Angeles (UCLA) - Department of Economics ( email )

Box 951477
405 Hilgard Avenue
Los Angeles, CA 90095-1477
United States
310-206-2833 (Phone)
310-825-9528 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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