Parental Preference, Heterogeneity, and Inequality Within the Household
AbstractGiven siblings are heterogeneous in their genetic endowment, we strive to model the implication of parental behaviour for inequality among siblings. Children are posited as passive recipients of human capital inputs from their parents. Unless there is a significant difference in genetic endowment among siblings, parents tend to reinforce the impact of genetic endowment by investing more in those who are likely to earn higher any ways. However, introducing uncertainty in earnings dilutes the above results. Parents’ decision regarding the allocation of human capital resources among siblings takes a different tune when the process involves the distribution of physical capital as well
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0103.
Date of creation: Mar 2001
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