Do Parental Transfers Reduce Youths' Incentives to Work?

Tao Gong

LABOUR, 2009, vol. 23, issue 4, 653-676

Abstract: Abstract. This paper uses data from the National Longitudinal Survey of Youth 1997 to examine the effects that parental transfers from a family have on a youth's labor supply. The results from a fixed‐effects two‐stage least squares estimator suggest that: (i) parental pocket money reduces youths' incentives to work; (ii) parental allowances have a non‐linear effect on hours worked; (iii) the subsample of siblings shows similar patterns that parental transfers have a negative impact on hours worked, although the magnitudes are slightly weaker than the full sample; and (iv) the response to parental transfers varies by age.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:bla:labour:v:23:y:2009:i:4:p:653-676

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