Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302247 
Authors: 
Year of Publication: 
2024
Series/Report no.: 
ISER Discussion Paper No. 1248
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
The decision of whether and how much to borrow from the credit market in order to finance education costs depends crucially on parental investment in education. This study constructs a simple two-period overlapping generations model incorporating both educational investment from parents and educational borrowing. The analysis shows that in the case where educational investment from parents and educational borrowing are substitutive, the relaxation of the borrowing constraint improves intergenerational mobility. In the complementary case, the relaxation of the borrowing constraint may impair intergenerational mobility. Implications differ depending on whether the relationship between parental investments and borrowings is substitutive or complementary.
Subjects: 
Educational borrowing
Intergenerational mobility
Education
JEL: 
I22
I24
J62
Document Type: 
Working Paper

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