TY  - JOUR
EP  - 2624
JF  - Journal of Political Economy
AV  - public
ID  - discovery10089197
N1  - This version is the version of record. For information on re-use, please refer to the publisher?s terms and conditions.
A1  - Abbott, B
A1  - Gallipoli, G
A1  - Meghir, C
A1  - Violante, GL
PB  - UNIV CHICAGO PRESS
VL  - 127
Y1  - 2019/12//
N2  - We examine the equilibrium effects of college financial aid policies building an overlapping-generations life cycle model with education, labor supply, and saving decisions. Cognitive and noncognitive skills of children depend on parental education and skills and affect education and labor market outcomes. Education is funded by parental transfers that supplement grants, loans, and student labor supply. Crowding out of parental transfers by government programs is sizable and cannot be ignored. The current system of federal aid improves long-run welfare by 6 percent. More generous ability-tested grants would increase welfare and dominate both an expansion of student loans and a labor tax cut.
IS  - 6
TI  - Education Policy and Intergenerational Transfers in Equilibrium
SP  - 2569
UR  - https://doi.org/10.1086/702241
ER  -