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Timing of Family Income, Borrowing Constraints and Child Achievement

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  • Maria Knoth Humlum

    (School of Economics and Management, University of Aarhus, Denmark)

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.

Suggested Citation

  • Maria Knoth Humlum, 2008. "Timing of Family Income, Borrowing Constraints and Child Achievement," Economics Working Papers 2008-12, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2008-12
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    References listed on IDEAS

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    Cited by:

    1. Jakobsen, Kristian Thor & Kaarsen, Nicolai & Vasiljeva, Kristine, 2016. "Does reduced cash beneit worsen educational outcomes of refugee children?," MPRA Paper 72008, University Library of Munich, Germany.
    2. Rune V. Lesner, 2018. "The long-term effect of childhood poverty," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(3), pages 969-1004, July.
    3. Pedro Carneiro & Italo López García & Kjell G. Salvanes & Emma Tominey, 2021. "Intergenerational Mobility and the Timing of Parental Income," Journal of Political Economy, University of Chicago Press, vol. 129(3), pages 757-788.
    4. Rune V. Lesner, 2016. "The Long-Term Effect of Childhood Poverty," Economics Working Papers 2016-08, Department of Economics and Business Economics, Aarhus University.
    5. Gary N. Marks, 2017. "Family Income Has Only Weak Effects on Cognitive Scores in Australia: A Comment on Khanam and Nghiem," Demography, Springer;Population Association of America (PAA), vol. 54(2), pages 801-807, April.
    6. Xu, Yilan & Yilmazer, Tansel, 2021. "Childhood socioeconomic status, adulthood obesity and health: The role of parental permanent and transitory income," Social Science & Medicine, Elsevier, vol. 283(C).

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    More about this item

    Keywords

    child human capital; timing of family income;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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