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Parent-child bargaining, parental transfers, and the post-secondary education decision

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  • Charlene Kalenkoski

Abstract

Schooling decisions are often modelled within a unitary preference framework. In this article, an alternative to the unitary preference model is proposed in which parents and child have conflicting preferences over parental transfers and the level of post-secondary schooling and participate in cooperative bargaining as a means of resolving this conflict. Comparisons of the implications of the bargaining and unitary preference models motivate tests of parental altruism and income pooling. To test these hypotheses, reduced form transfer and schooling equations are estimated using data from the High School and Beyond Surveys. The evidence suggests that the unitary preference model be rejected.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 40 (2008)
Issue (Month): 4 ()
Pages: 413-436

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Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:413-436

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Cited by:
  1. Cobb-Clark, Deborah A. & Gorgens, Tue, 2012. "Parents' Economic Support of Young-Adult Children: Do Socioeconomic Circumstances Matter?," IZA Discussion Papers 6376, Institute for the Study of Labor (IZA).
  2. Charlene Kalenkoski & Sabrina Pabilonia, 2010. "Parental transfers, student achievement, and the labor supply of college students," Journal of Population Economics, Springer, vol. 23(2), pages 469-496, March.
  3. Thomas Cornelissen & Uwe Jirjahn & Georgi Tsertsvadze, 2008. "Parental Background and Earnings: German Evidence on Direct and Indirect Relationship," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 228(5+6), pages 554-572, December.

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