Do public scholarships crowd out parental transfers? Evidence at the intensive margin from France

Sébastien Grobon and François-Charles Wolff

Economics of Education Review, 2024, vol. 98, issue C

Abstract: This paper investigates the extent to which means-tested scholarships received by higher education students crowd out parental financial support at the intensive margin. We estimate a private transfer function using survey data collected in France in 2014 on a sample of students aged 18–24 who receive public scholarships. Introducing the amount of public transfer as an exogenous covariate, we find that one additional euro of scholarship is associated with a decrease in parental transfers of 0.40 euro. Using an instrumental variable strategy that exploits the non-linear schedule of the scholarship amount, we find a larger effect with a decrease of about 0.50. Our results suggest that a substantial part of the scholarship benefits low-income parents by reducing the amount of money they give to their student children.

Keywords: Public scholarship; Students; Parental transfers; Crowding-out effect; Altruism (search for similar items in EconPapers)
JEL-codes: D10 D64 I2 I3 J13 L38 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Working Paper: Do public scholarships crowd out parental transfers? Evidence at the intensive margin from France (2024)
Working Paper: Do public scholarships crowd out parental transfers? Evidence at the intensive margin from France (2022)
Working Paper: Do public scholarships crowd out parental transfers? Evidence at the intensive margin from France (2022)
Working Paper: Do public scholarships crowd out parental transfers? Evidence at the intensive margin from France (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:98:y:2024:i:c:s0272775723001498

DOI: 10.1016/j.econedurev.2023.102502

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