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Nepotism, incentives and the academic success of college students

  • Gevrek, Deniz
  • Gevrek, Z. Eylem

This study investigates the role of parent-owned businesses on children's college success and post-college aspirations by using a unique data set from a private university in Turkey. The data set matches college students' administrative records with survey responses. The presence of self-employed parents and family businesses has a strong negative association with college success even after accounting for observed ability, parental background, and various individual characteristics. An explanation for the lower GPAs of the children of self-employed parents is that in the presence of parent-owned businesses students have a larger set of post-graduation options and are more likely to plan on becoming self-employed due to intergenerational transfer of self-employment. Hence, these students may not exert as much effort in acquiring the task-specific career-oriented human capital taught in college. In line with expectations, we find that the children of self-employed parents are more likely to have entrepreneurial intent and are less likely to plan to attend graduate school.

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Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 17 (2010)
Issue (Month): 3 (June)
Pages: 581-591

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Handle: RePEc:eee:labeco:v:17:y:2010:i:3:p:581-591
Contact details of provider: Web page: http://www.elsevier.com/locate/labeco

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