Parental Investments in College and Later Cash Transfers

TitleParental Investments in College and Later Cash Transfers
Publication TypeJournal Article
Year of Publication2018
AuthorsHaider, S, McGarry, KM
JournalDemography
Volume55
Issue5
Pagination1705-1725
Date Published10/2018
ISSN Number0070-3370
KeywordsCollege, Family transfers, Finances, Social Support
Abstract

Parents often provide generous financial transfers to their adult children, perhaps assisting with college expenses, recognizing major life course events, or cushioning against negative financial shocks. Because resources are limited, a transfer made to one child likely affects transfers made to others in the family. Despite such possibilities, data limitations have led previous authors to focus almost exclusively on a single type of transfer made at a single point in time. Using data from the Health and Retirement Study, we examine the relationships among parental transfers for college and later cash transfers to all children within a family. We find that parents typically spend differentially on the postsecondary schooling of their children but find no evidence that this differential spending is offset by later cash transfers.

URLhttp://link.springer.com/10.1007/s13524-018-0703-6http://link.springer.com/content/pdf/10.1007/s13524-018-0703-6.pdfhttp://link.springer.com/content/pdf/10.1007/s13524-018-0703-6.pdfhttp://link.springer.com/article/10.1007/s13524-018-0703-6/fulltext.html
DOI10.1007/s13524-018-0703-6
Short TitleDemography
Citation Key9832