The Role of Parental Wealth and Income in Financing Children’s College Attendance and Its Consequences

V. Joseph Hotz, Emily E. Wiemers, Joshua Rasmussen and Kate Maxwell Koegel

Journal of Human Resources, 2023, vol. 58, issue 6, 1850-1880

Abstract: This work examines the influence of parental wealth and income on children’s college attendance and parents’ financing decisions and on whether children graduate from college. We also examine whether parental financing affects the subsequent indebtedness of parents and children. We find that higher levels of parents’ wealth and income increase the likelihood that children attend college with financial support relative to not attending college and that parental wealth increases the likelihood that children graduate from college. We show descriptive evidence that parents’ financing of their children’s college attendance increases parents’ subsequent indebtedness but does not reduce their children’s indebtedness, including their student loan debt.

JEL-codes: I24 J10 J24 (search for similar items in EconPapers)
Date: 2023
Note: DOI: https://doi.org/10.3368/jhr.1018-9828R2
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:58:y:2023:i:6:p:1850-1880

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