Private transfers and graduate responsibilities: Evidence from the National Income Dynamics Study

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dc.contributor.author Whitelaw, Emma
dc.contributor.author Branson, Nicola
dc.date.accessioned 2020-10-22T13:55:13Z
dc.date.available 2020-10-22T13:55:13Z
dc.date.issued 2020-10
dc.identifier.citation Whitelaw, E., Branson, N. (2020). Private transfers and graduate responsibilities: Evidence from the National Income Dynamics Study. Cape Town: SALDRU, UCT. (SALDRU Working Paper No. 270)
dc.identifier.isbn 978-1-928516-32-3
dc.identifier.uri http://hdl.handle.net/11090/993
dc.description.abstract In this paper, we re-examine private transfer behaviour in light of recent public and media discourse on black tax. In particular, we aim to better understand whether graduates of post-secondary education face disproportionate responsibilities to meet family needs through increased ability to offer financial support. Firstly, we reject a unitary model of household decision making for remittances, suggesting that a collective model of household behaviour is likely to govern remittance-sending behaviour. This means an individuals’ characteristics, preferences and responsibilities are likely to underpin remittance decisions. Indeed, we find that graduates are more likely to be remitters than other individuals, and that part of this responsibility arises from graduate status alone – that is, over and above labour market characteristics and living arrangements. We additionally observe a weaker relationship between remittance value and graduate remitters’ income, suggesting the amount sent by graduates is not as strongly determined by the income they earn – consistent with graduates facing a responsibility regardless of their income. Lastly, we consider a measure of intra-household sharing, and find that a sizeable share of children receive transfers towards their education expenses from co-resident family members who are not their parents. Thus intra-household transfers may form an integral part of the black tax narrative, although they are not typically observed in survey data. en_US
dc.description.sponsorship This work forms part of Emma Whitelaw's PhD thesis. The authors acknowledge support from the Kresge Foundation. Opinions expressed, and conclusions arrived at, are those of the authors and cannot necessarily be attributed to the Kresge Foundation. en_US
dc.language.iso en en_US
dc.relation.ispartofseries Saldru Working Paper;270
dc.title Private transfers and graduate responsibilities: Evidence from the National Income Dynamics Study en_US
dc.type Working Paper en_US


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