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

Sébastien Grobon and François-Charles Wolff

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

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 completed in 2014 in France on a sample of students aged between 18 and 24 and receiving public scholarships. When introducing the amount of public transfer as exogenous covariate, we find that one additional euro of scholarship is associated with a decrease in parental transfers of 0.40-0.55 euro. When considering an instrumental variable strategy which exploits the non-linear schedule of the scholarship amount, we find a larger effect with a decrease of 0.50-0.65 euros. Our results suggest that a substantial part of student scholarship benefits low-income parents through a reduction in the money they give to their student children.

Keywords: public scholarship; students; parental transfers; crowding-out effect; altruism; bourses sur critères sociaux; transferts intergénérationnels; effet d'éviction; altruisme; étudiants; enseignement supérieur; aides publiques (search for similar items in EconPapers)
Date: 2022-11
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03623525v3
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Published in 2022

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Related works:
Journal Article: 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 (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)
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