Using data from the Korean Employment Education Panel, this study investigated the effects
of parents\' payment of college students\' tuitions on their behavior and readiness to transition to
the labor market. This study applied propensity score weighting to correct for sample selection
bias. This study found that students\' exclusive dependence on parents\' payment has negative
effects on students\' commitment to studying. A model revealed negative effects of parents\'
payment on academic advising with faculty. In addition, parents\' full payment of college had
negative effects on human capital accumulation, such as the attainment of a vocational certificate and the participation in internship. These results imply that parents\' payment for college tuition can become a free subsidy for college students, so that a moral hazard can occur for students. Under the circumstance that universal higher education in Korea is achieved by parental support and commitment, if college students do not internalize college tuitions, they will not will internalize the objectives of college education. This implies that for college students the transition to adulthood characterized by financial independence and behavioral responsibility could be postponed by externalization of college tuition through parents\' payment.