| Publisher | U.S. Department of Labor | ||
|---|---|---|---|
| Format | 745.3KB PDF | Date added | 18 Dec 2003 |
| Topics | Human Capital Management | ||
| Downloads | 32 | ||
This paper studies how the returns to education in the adult labor market affect children's school enrollment. The paper shows that when families are liquidity constrained, the expected relationship between higher returns and children's schooling is ambiguous. When liquidity constraints matter, the relationship can only be assessed empirically. The results suggest that the appropriate policy focus to raise children's school enrollment in these households is on initiatives that raise the returns to education in the adult labor market, and that ease current "cash flow" problems.
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