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Household Choices and Child Development

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  • Daniela Del Boca
  • Christopher Flinn
  • Matthew Wiswall

Abstract

The growth in labour market participation among women with young children has raised concerns about its implications for child cognitive development. We estimate a model of the cognitive development process of children nested within an otherwise standard model of household behaviour. The household makes labour supply decisions and provides time and money inputs into the child quality production process during the development period. Our empirical results indicate that both parents' time inputs are important for the cognitive development of their children, particularly when the child is young. Money expenditures are less productive in terms of producing child quality. Comparative statics exercises demonstrate that cash transfers to households with children have small impacts on child quality due to the relatively low impact of money investments on child outcomes and the fact that a significant fraction of the transfer is spent on other household consumption and the leisure of the parents. Copyright 2014, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Review of Economic Studies.

Volume (Year): 81 (2014)
Issue (Month): 1 ()
Pages: 137-185

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Handle: RePEc:oup:restud:v:81:y:2014:i:1:p:137-185

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  1. Løken, Katrine V., 2010. "Family income and children's education: Using the Norwegian oil boom as a natural experiment," Labour Economics, Elsevier, Elsevier, vol. 17(1), pages 118-129, January.
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  8. Loken, Katrine Vellesen & Mogstad, Magne & Wiswall, Matthew, 2010. "What Linear Estimators Miss: Re-Examining the Effects of Family Income on Child Outcomes," IZA Discussion Papers 4971, Institute for the Study of Labor (IZA).
  9. Liu, Haiyong & Mroz, Thomas A. & van der Klaauw, Wilbert, 2010. "Maternal employment, migration, and child development," Journal of Econometrics, Elsevier, Elsevier, vol. 156(1), pages 212-228, May.
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  11. Susan L. Averett & Lisa A. Gennetian & H. Elizabeth Peters, 2005. "Paternal child care and children's development," Journal of Population Economics, Springer, Springer, vol. 18(3), pages 391-414, 09.
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