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Financial Transfers and Educational Achievement

Author

Listed:
  • Arnaud Chevalier

    (Centre for the Economics of Education, London School of Economics,)

  • Gauthier Lanot

    (Keele University, Department of Economics)

Abstract

Pupils from poorer background are commonly observed to have lower schooling than other pupils. However, the effect of family income on the child’s educational attainment is unclear. The effect could be direct and due to financial constraints preventing parental investment in their children’s schooling, or indirect when being brought up in a poorer background is associated with some unobservable characteristics reducing schooling. We propose a methodology that separates these effects and find that the indirect effect dominates the direct effect. A policy of educational allowance has no significant effect on post-compulsory education decision making. It appears that some family characteristics have long-term effects on the decision to invest in education over and above the possible financial constraint.

Suggested Citation

  • Arnaud Chevalier & Gauthier Lanot, 2000. "Financial Transfers and Educational Achievement," Keele Department of Economics Discussion Papers (1995-2001) 2000/01, Department of Economics, Keele University.
    • Handle: RePEc:kee:keeldp:2000/01
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    File URL: http://www.keele.ac.uk/depts/ec/wpapers/0001.pdf
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    More about this item

    Keywords

    Schooling decision; Education Maintenance Allowance; Family background;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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