Educational financing and lifetime earnings
Educational financing and lifetime earnings
This paper formulates and estimates a dynamic programming model of optimal educational financing decisions. The main purpose of the paper is to measure the effect of short-term parental cash transfers, received during school, on educational borrowing and in-school work decisions, and on post-graduation lifetime earnings. The estimated parameters of the model imply that parental cash transfers do not significantly influence post-graduation lifetime earnings. Long-term factors such as family background and prior human capital investments are more important. Parental cash transfers do, however, significantly determine the decision to borrow or work during school and the level of lifetime consumption.
1189-1216
Sauer, Robert M.
60335a9a-c607-4934-8fa0-3942b46d1373
2004
Sauer, Robert M.
60335a9a-c607-4934-8fa0-3942b46d1373
Sauer, Robert M.
(2004)
Educational financing and lifetime earnings.
Review of Economic Studies, 71 (3), .
(doi:10.1111/0034-6527.00319).
Abstract
This paper formulates and estimates a dynamic programming model of optimal educational financing decisions. The main purpose of the paper is to measure the effect of short-term parental cash transfers, received during school, on educational borrowing and in-school work decisions, and on post-graduation lifetime earnings. The estimated parameters of the model imply that parental cash transfers do not significantly influence post-graduation lifetime earnings. Long-term factors such as family background and prior human capital investments are more important. Parental cash transfers do, however, significantly determine the decision to borrow or work during school and the level of lifetime consumption.
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Published date: 2004
Organisations:
Economics
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Local EPrints ID: 35076
URI: http://eprints.soton.ac.uk/id/eprint/35076
ISSN: 0034-6527
PURE UUID: fe93413d-1867-4c9c-af9c-42967cb13ae4
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Date deposited: 15 May 2006
Last modified: 15 Mar 2024 07:50
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Author:
Robert M. Sauer
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