Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/339496 
Year of Publication: 
2025
Series/Report no.: 
IFS Working Papers No. 25/23
Publisher: 
The Institute for Fiscal Studies (IFS), London
Abstract: 
Parental transfers of time, education, and money shape intergenerational mobility. Using panel data from birth to retirement, we estimate child skill production functions and embed them in a dynastic model of parental investment. We find that parental time investments have a dual purpose: investments increase children's human capital, but parents also enjoy time spent with children more than work. We then assess the effects of relaxing intergenerational borrowing constraints via student loans: student loans reduce persistence in earnings and education and raise parental welfare. However, while children newly able to attend college experience welfare gains, on average the higher debt levels reduce children's welfare.
Subjects: 
Intergenerational transmission
Parents
Investment in education
Childcare
Student financing
Welfare analysis
Children
Young adults
Life course
Estimation
United Kingdom
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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