"Hope for the Family: The Effects of Merit Aid Programs on Parental Outcomes," is a talk by Olga Malkova, assistant professor of economics, Gatton College of Business and Economics, University of Kentucky.
While college expenses can consume a significant portion of family income, state-sponsored merit aid programs pay for the tuition of students who have maintained a modest grade point average in high school and are enrolled in an institution in their state of residence.
This study examines the effects of the introduction of merit aid programs in the United States on parental employment outcomes. The introduction of merit aid programs makes attending college substantially cheaper to a significant share of families with a college-age child, and mothers might decrease their labor supply in response to a reduction in their adult child costs.
We exploit the roll-out of nine strong merit aid programs from 1993 to 2004 within an event-study framework. We find that mothers of college-age children decreased their annual hours of work by 15 percent over nine years after the implementation of merit aid. This decline is mostly driven by mothers moving from full-time into part-time jobs. However, fathers did not change their employment behavior.
Olga Malkova holds a PhD in economics from the University of Michigan and has research interests on issues in labor economics and demography in the United States and the Soviet Union.
Sponsored by the Department of Economics Danforth-Lewis Speakers Series.