THE EFFECT OF PARENTAL TRANSFERS AND BORROWING CONSTRAINTS ON EDUCATIONAL ATTAINMENT

摘要: A strong positive association between one’s school attainment and that of parents has been consistently documented in numerous empirical studies.2 The underlying cause this intergenerational correlation the subject contentious debate social sciences for many years. Two competing types explanations are prominent. first is based on heritability traits, is, children more educated may inherit abilities, personalities, preferences led to higher educational achievement their parents. second type explanation human capital production, namely parents, due own and/or wealth, invest heavily children’s capital. Human investments take forms, such as parental time (e.g., reading young children), purchase market goods complementary learning books), or direct financial subsidies form college tuition payments). In article, we focus decision process adults (beginning at age 16) whom (monetary in-kind transfers) postsecondary education likely be most salient investments. central question ask is: To what extent through mechanisms do differences transfer behavior account attainment? importance transfers decisions affected by degree which have access markets a means financing expenditures. Thus, key address concerns borrowing constraints, i.e., restrictions availability uncollateralized loans, affect attainment. Clearly, if constraints binding, then youths from families with