 Do public scholarships crowd out parental transfers? Evidence from FranceSébastien Grobon and François-Charles Wolff Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne Abstract: This paper investigates the extent to which means-tested scholarships received by higher education students in France crowd out parental financial support. We estimate a private transfer function using survey data completed in 2014 on a sample of students aged between 18 and 24. When introducing the amount of public scholarship as exogenous covariate, we find that one additional euro of scholarship is associated with a decrease in private transfers of 0.40-0.50 euros. We also consider an instrumental variable strategy which exploits the non-linear schedule of the scholarship amount and find a larger effect with a decrease of 0.50-0.65 euros. Overall, 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 (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:22009 Access Statistics for this paper More papers in Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne Contact information at EDIRC. |
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