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Office of Survey Methods Research
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Published Year: 2006
Survey/Program(s): Office of Productivity and Technology
Catalog: Economic Working Paper
WP Number: WP-401
Publication Status / Disposition: Available from the Office of Productivity and Technology (November 2006).
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Parental Transfers, Student Achievement, and the Labor Supply of College Students
Abstract
Using nationally representative data from the NLSY97 and a simultaneous equations model, this paper analyzes the financial motivations for and the effects of employment on U.S. college students' academic performance. The data confirm the predictions of the theoretical model that lower parental transfers and greater costs of attending college increase the number of hours students work while in school, although students are not very responsive to these financial motivations. They also show that increased hours of work lead to lower grade point averages (GPAs), at least for students attending four-year colleges.