Downes, Thomas A.; Figlio, David N. - Tufts University <Medford, Mass.>; University of …; … - 1999
[...]What might account for this link between parentalincome and children’s income? Many economists believethat this …-income parents can invest inmore (and better) education for their children, in a mannerthat low-income parents cannot, due to credit … marketimperfections. Since credit markets are imperfect, becauseparents cannot borrow against their children’s futureearnings to finance …