Parental Transfers, Student Achievement, and the Labor Supply of College Students

Using nationally representative data from the NLSY97, financial motivations for and the effects of employment on U.S. college students’ academic performance are examined. While it is expected that fewer financial resources and a higher cost of college cause greater student employment, the data indicate that the number of hours a student works per week is unaffected by either the level of parental transfers or the cost of schooling. Contrary to existing evidence that a greater number of hours worked leads to poorer academic performance, the number of hours worked per week does not negatively affect a student’s GPA and may actually improve it.