Household Allocations for Children's College Education: Evidence for the "Snow White" Effect

John C. Henretta, University of Florida
Beth J. Soldo, University of Pennsylvania
Matthew F. Van Voorhis, University of Florida

Educational expenditures are a substantial component of the investment parents make in their children, with important implications for the wealth accumulation of parents and the career trajectory of offspring. Differential human capital investment by parents also may have implications for which child assists the parent as they age. We know relatively little, however, about how parents allocate these expenditures among their children. In 2001, the Health and Retirement Study (HRS) collected data on college expenditures for individual children of sampled parents. Using these data we examine how family structure affects the allocation of human capital investments among children. Results indicate that while stepchildren are just as likely to attend college as biologic offspring, they receive relatively less financial support for college tuition. Results are particularly strong for children with a stepmother. We also find that later born children have a larger share of their tuition paid for by parents.