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Parental Support for Human Capital Investment by Young Adults

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Author Info
Ermisch, John F

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Abstract

The paper develops two models in which parents support their adult child’s human capital investment through financial transfers and/or coresidence. In one, parents are altruistic, and in the other they make loans to children for purely selfish reasons. Econometric estimates using the first four waves of the British Household Panel Study lend more support to the altruistic motivation for support and indicate substitution between the two kinds of support.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1536.

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Date of creation: Dec 1996
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Handle: RePEc:cpr:ceprdp:1536

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Related research
Keywords: Coresidence; Human Capital; Intergenerational Transfers;

Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
I22 - Health, Education, and Welfare - - Education - - - Educational Finance
J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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  1. repec:ese:iserwp: is not listed on IDEAS
  2. Abhijit Banerjee, 2007. "Educational Policy and the Economics of the Family," Working Papers id:1186, esocialsciences.com. [Downloadable!]
  3. David Blanc & François-Charles Wolff, 2006. "Leaving Home in Europe: The Role of Parents’ and Children’s Incomes," Review of Economics of the Household, Springer, vol. 4(1), pages 53-73, 03. [Downloadable!] (restricted)
  4. Gianna Claudia Giannelli & Chiara Monfardini, 2001. "JOINT DECISIONS ON HOUSEHOLD MEMBERSHIP AND HUMAN CAPITAL ACCUMULATION OF YOUTHS The role of expected earnings and local markets," CHILD Working Papers wp02_01, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
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This page was last updated on 2009-11-25.


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