IDEAS home Printed from
   My bibliography  Save this paper

The Role of Parental Wealth and Income in Financing Children's College Attendance and Its Consequences


  • Hotz, V. Joseph

    () (Duke University)

  • Wiemers, Emily

    () (University of Massachusetts Boston)

  • Rasmussen, Joshua

    () (Duke University)

  • Maxwell Koegel, Kate

    () (Duke University)


This paper examines the influence of parental wealth and income on children's college attendance and parental financing decisions, graduation, and quality of college attended, and whether parental financing affects the subsequent indebtedness of parents and children. We find that higher levels of parents' wealth and income increase the likelihood that children attend college with financial support relative to not attending college, and that parental wealth increases the likelihood that children graduate from college. We show descriptive evidence that parental support for college increases the subsequent level of housing debt that parents hold but does not reduce student debt for children.

Suggested Citation

  • Hotz, V. Joseph & Wiemers, Emily & Rasmussen, Joshua & Maxwell Koegel, Kate, 2018. "The Role of Parental Wealth and Income in Financing Children's College Attendance and Its Consequences," IZA Discussion Papers 11842, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11842

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    college attendance and graduation; financing college; effects of parental wealth and income;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp11842. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.