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

Sébastien 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 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 (search for similar items in EconPapers)
JEL-codes: D10 D64 I2 I3 J13 L38 (search for similar items in EconPapers)
Date: 2022-03, Revised 2022-11
New Economics Papers: this item is included in nep-eur
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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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