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Endogenous Altruism: Theory and Evidence from Chinese Twins

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  • Junjian Yi

Abstract

This paper studies the endogenous formation of intersibling altruism. The theory suggests that parental incentive to foster children’s fraternal love is positively related to efficiency gains from more human capital investment in the more gifted child. The empirical analyses explore the plausibly exogenous within-twin difference in birth weight, a proxy for prenatal endowment. Consistent with the theory, the estimation results show that a larger difference in children’s birth weight leads to more intensive parenting practice to foster children’s fraternal love and that when such practice is more intensive, the heavier child obtains more investment relative to the other child.

Suggested Citation

  • Junjian Yi, 2019. "Endogenous Altruism: Theory and Evidence from Chinese Twins," Journal of Labor Economics, University of Chicago Press, vol. 37(1), pages 247-295.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/698900
    DOI: 10.1086/698900
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    Cited by:

    1. Savelyev, Peter A. & Ward, Benjamin C. & Krueger, Robert F. & McGue, Matt, 2022. "Health endowments, schooling allocation in the family, and longevity: Evidence from US twins," Journal of Health Economics, Elsevier, vol. 81(C).
    2. Fan, Yi, 2020. "Does adversity affect long-term financial behaviour? Evidence from China’s rustication programme," Journal of Urban Economics, Elsevier, vol. 115(C).

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