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Self-financing, Parental Transfer, and College Education

Author

Listed:
  • Jungho Lee

    (Yonsei University)

  • Sunha Myong

    (Kyung Hee University)

Abstract

We show that financial constraints can affect the human capital accumulation of college students by influencing students' labor supply. We document that many college students work a substantial number of hours at low-skill jobs, and students who have fewer financial resources (in particular, parental transfer) tend to work more. We develop a model that incorporates college students' labor supply and its interaction with parental transfer in the presence of financial constraints. By estimating the model, we quantify the trade-off between self-financing and human capital accumulation and discuss the implications of a wage subsidy policy.

Suggested Citation

  • Jungho Lee & Sunha Myong, 2026. "Self-financing, Parental Transfer, and College Education," Working papers 2026rwp-278, Yonsei University, Yonsei Economics Research Institute.
    • Handle: RePEc:yon:wpaper:2026rwp-278
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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