Private transfers and college students’ decision to work

Andreas Bachmann and Stefan Boes

Economics of Education Review, 2014, vol. 42, issue C, 34-42

Abstract: We estimate the impact of external financial support on the labor supply of students during their tertiary education. Using a dynamic labor supply model and accounting for the endogeneity of income from private transfers, we find a significantly lower likelihood of being employed for transfer recipients. Our results suggest that private transfers lead to a shift in students’ time allocation, lowering their hours devoted to working and increasing their time devoted to studying. We find evidence for a psychological component of receiving transfers through an increase in the perceived risk of failure in academic studies.

Keywords: Financial support; Student employment; Time trade-off; Simultaneity bias (search for similar items in EconPapers)
JEL-codes: I21 I23 J22 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:42:y:2014:i:c:p:34-42

DOI: 10.1016/j.econedurev.2014.05.005

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