Parental transfers, student achievement, and the labor supply of college students
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Using nationally representative data from the NLSY97 and a simultaneous equations model, this paper analyzes the financial motivations for and the effects of employment on U.S. college students’ academic performance. The data confirm the predictions of the theoretical model that lower parental transfers and greater costs of attending college increase the number of hours students work while in school, although students are not very responsive to these financial motivations. They also provide some evidence that greater hours of work lead to lower grade point averages (GPAs).
KeywordsEmployment Transfers GPA
JEL ClassificationD1 I2 J2
The authors would like to thank Kweku Opoku-Agyemang, Anastasiya Osborne, Tatevik Sekhposyan, and Judy Yang for research assistance. The authors would also like to thank Alison Aughinbaugh, Michael Giandrea, Mark Long, Peter Meyer, David Ribar, Larry Rosenblum, Donna Rothstein, Leslie Stratton, Leo Sveikauskas, Bruce Weinberg, Cindy Zoghi, and three anonymous referees for comments and suggestions. The authors are especially indebted to Stan Panis and David Ribar for their aML programming assistance.
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