Premium
Do Parental Transfers Reduce Youths' Incentives to Work?
Author(s) -
Gong Tao
Publication year - 2009
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.2009.00465.x
Subject(s) - incentive , work hours , demographic economics , national longitudinal surveys , longitudinal data , psychology , work (physics) , economics , sample (material) , survey data collection , labour supply , labour economics , demography , working hours , sociology , statistics , mathematics , mechanical engineering , chemistry , chromatography , engineering , microeconomics
. This paper uses data from the National Longitudinal Survey of Youth 1997 to examine the effects that parental transfers from a family have on a youth's labor supply. The results from a fixed‐effects two‐stage least squares estimator suggest that: (i) parental pocket money reduces youths' incentives to work; (ii) parental allowances have a non‐linear effect on hours worked; (iii) the subsample of siblings shows similar patterns that parental transfers have a negative impact on hours worked, although the magnitudes are slightly weaker than the full sample; and (iv) the response to parental transfers varies by age.