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Timing of family income, borrowing constraints, and child achievement

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  • Maria Humlum

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Abstract

In this paper, I investigate the effects of the timing of family income on child achievement production. Detailed administrative data augmented with PISA test scores at age 15 are used to analyze the effects of the timing of family income on child achievement. Contrary to many earlier studies, tests for early borrowing constraints suggest that parents are not constrained in early investments in their children's achievement, and thus that the timing of income does not matter for long-term child outcomes. This is a reasonable result given the setting in a Scandinavian welfare state with generous child and education subsidies. Actually, later family income (age 12-15) is a more important determinant of child achievement than earlier income.

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File URL: http://hdl.handle.net/10.1007/s00148-010-0309-9
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Bibliographic Info

Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 24 (2011)
Issue (Month): 3 (July)
Pages: 979-1004

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Handle: RePEc:spr:jopoec:v:24:y:2011:i:3:p:979-1004

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Related research

Keywords: Child human capital; Timing of family income; I2; J24;

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  1. Aakvik, Arild & Salvanes, Kjell Gunnar & Vaage, Kjell, 2005. "Educational Attainment and Family Background," Working Papers in Economics 10/05, University of Bergen, Department of Economics.
  2. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
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  9. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
  10. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute for the Study of Labor (IZA).
  11. John Ermisch & Marco Francesconi & David J. Pevalin, 2004. "Parental partnership and joblessness in childhood and their influence on young people's outcomes," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 167(1), pages 69-101.
  12. David M. Blau, 1999. "The Effect Of Income On Child Development," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 261-276, May.
  13. Elizabeth Caucutt & Lance Lochner, 2004. "Early and Late Human Capital Investments, Credit Constraints, and the Family," 2004 Meeting Papers 129, Society for Economic Dynamics.
  14. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
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