Timing of Family Income, Borrowing Constraints and Child Achievement
AbstractIn 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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Bibliographic InfoPaper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2008-12.
Date of creation: 01 Oct 2008
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child human capital; timing of family income;
Other versions of this item:
- Maria Humlum, 2011. "Timing of family income, borrowing constraints, and child achievement," Journal of Population Economics, Springer, vol. 24(3), pages 979-1004, July.
- I2 - Health, Education, and Welfare - - Education
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-07 (All new papers)
- NEP-EDU-2008-10-07 (Education)
- NEP-HRM-2008-10-07 (Human Capital & Human Resource Management)
- NEP-LAB-2008-10-07 (Labour Economics)
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