Marching Across Generations? Education Benefits and Intra-Household Decision Making

Journal of Human Capital, 13(3), 2018

37 Pages Posted: 8 Jan 2020

See all articles by Benjamin Castleman

Benjamin Castleman

University of Virginia

Francis X. Murphy

U. S. Army (TACOM-ARDEC)

Bill Skimmyhorn

Mason School of Business, College of William & Mary; U.S. Army Office of Economic and Manpower Analysis

Date Written: December 21, 2018

Abstract

We investigate how families resolve an important intrafamily household allocation problem — investing in their children’s postsecondary education — in the context of the Post-9/11 GI Bill. This legislation allowed service members to transfer education benefits to a family member in exchange for additional military service. Descriptive analysis reveals clear socioeconomic differences in patterns of transfer: utilization rates are highest among senior service members, who are better educated and earn higher wages, and are lowest among less educated, lower-wage junior soldiers. This pattern of use suggests that the transfer provision may have limited impact on intergenerational mobility for service members of low socioeconomic status.

Keywords: Intergenerational Mobility, GI Bill; education; Military, Deferred compensation

Suggested Citation

Castleman, Benjamin and Murphy, Francis X. and Skimmyhorn, William, Marching Across Generations? Education Benefits and Intra-Household Decision Making (December 21, 2018). Journal of Human Capital, 13(3), 2018, Available at SSRN: https://ssrn.com/abstract=3505550

Benjamin Castleman

University of Virginia ( email )

1400 University Ave
Charlottesville, VA 22903
United States

Francis X. Murphy

U. S. Army (TACOM-ARDEC)

United States

William Skimmyhorn (Contact Author)

Mason School of Business, College of William & Mary ( email )

Williamsburg, VA
United States

HOME PAGE: http://https://mason.wm.edu/faculty/directory/full-time-faculty/skimmyhorn_w.php

U.S. Army Office of Economic and Manpower Analysis ( email )

West Point, NY
United States

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