Publication Type

Working Paper

Version

publishedVersion

Publication Date

9-2023

Abstract

We show that financial constraints can affect the human capital accumulation of college students by influencing students’ labor supply. We document that many college students work a substantial number of hours at low-skill jobs, and students who have fewer financial resources (in particular, parental transfer) tend to work more. We develop a model that incorporates college students’ labor supply and its interaction with parental transfer in the presence of financial constraints. By estimating the model, we quantify the trade-off between self-financing and human capital accumulation and discuss the implications of a wage subsidy policy.

Keywords

College Education, Parental Transfer, Labor Supply, Intergenerational Mobility, Financial Constraints

Discipline

Econometrics | Economics

Research Areas

Applied Microeconomics

First Page

1

Last Page

84

Copyright Owner and License

Authors

Comments

published as a conference paper in AASLE 2018

Included in

Econometrics Commons

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