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 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)
Pages: 53 pages
Date: 2022-03, Revised 2024-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://mse.univ-paris1.fr/pub/mse/CES2022/22009R.pdf (application/pdf)
https://shs.hal.science/halshs-03623525

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 (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:mse:cesdoc:22009rr

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