Tuesday, January 22, 2013

More Support, Less Effort? Parental Support Crowds Out Student Effort in College

More Is More or More Is Less? Parental Financial Investments during College

Laura Hamilton
American Sociological Review, forthcoming

Evidence shows that parental financial investments increase college attendance, but we know little about how these investments shape postsecondary achievement. Two theoretical frameworks suggest diametric conclusions. Some studies operate from a more-is-more perspective in which children use calculated parental allocations to make academic progress. In contrast, a more-is-less perspective, rooted in a different model of rational behavior, suggests that parental investments create a disincentive for student achievement. I adjudicate between these frameworks, using data from nationally representative postsecondary datasets to determine what effect financial parental investments have on student GPA and degree completion. The findings suggest seemingly contradictory processes. Parental aid decreases student GPA, but it increases the odds of graduating — net of explanatory variables and accounting for alternative funding. Rather than strategically using resources in accordance with parental goals, or maximizing on their ability to avoid academic work, students are satisficing: they meet the criteria for adequacy on multiple fronts, rather than optimizing their chances for a particular outcome. As a result, students with parental funding often perform well enough to stay in school but dial down their academic efforts. I conclude by highlighting the importance of life stage and institutional context for parental investment.

Okay, but what about this kind of support, from "Daddy"?  John-O is pretty much a free-market guy, but he has a daughter at college.   He might prefer to pay, rather than have this kind of support.  The list of "Sugar Baby" colleges, for your delectation.  

Nod to Kevin Lewis

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