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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.

Suggested Citation

  • Charlene Kalenkoski, 2008. "Parent-child bargaining, parental transfers, and the post-secondary education decision," Applied Economics, Taylor & Francis Journals, vol. 40(4), pages 413-436.
  • Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:413-436
    DOI: 10.1080/00036840600690264
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    Cited by:

    1. Deborah Cobb-Clark & Tue Gørgens, 2014. "Parents’ economic support of young-adult children: do socioeconomic circumstances matter?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(2), pages 447-471, April.
    2. Xia, Xiaoyu, 2016. "Forming wage expectations through learning: Evidence from college major choices," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 176-196.
    3. Charlene Kalenkoski & Sabrina Pabilonia, 2010. "Parental transfers, student achievement, and the labor supply of college students," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(2), pages 469-496, March.
    4. Cornelissen Thomas & Jirjahn Uwe & Tsertsvadze Georgi, 2008. "Parental Background and Earnings: German Evidence on Direct and Indirect Relationships," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(5-6), pages 554-572, October.

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