Explaining Differences in Education between Foster Children and Biological Children: a Sibling Rivalry Approach. Some Evidence from Indonesia
AbstractThis paper aims at explaining differences in education between foster-children and the biological children of their new household by differences in return to education as suggested by the human capital investment model. Defining this return by the amount of the old-age support the care-givers expect to receive, we assume that foster-children have a lower return to education than biological children, as the former might provide old-age support for both their host and biological parents while the latter to their biological parents only. Given this assumption and if the credit constraints are binding, the model suggests that foster-children will receive less human capital investment if there are in presence of host children than if they are not.In contrast, if parents have aversion against inequality, the prediction reverses: foster-children will receive more human capital investment if there are in presence of host children than if they are not.Using data from Indonesia, we provide some evidence in favor of the credit constraints hypothesis.This suggests that financial support to families who care for both biological and foster-children will enhance the latter education as it would reduce the credit constraints and thus, the induced sibling rivalry.
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Bibliographic InfoPaper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00290644.
Date of creation: 25 Jun 2008
Date of revision:
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Foster-Children; Sibling Rivalry; Asia; Indonesia;
Other versions of this item:
- Karine Marazyan, 2008. "Biological versus foster children education : the old-age support motive as a catch-up determinant ? Some evidence from Indonesia," Documents de travail du Centre d'Economie de la Sorbonne v08042, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- I2 - Health, Education, and Welfare - - Education
- J1 - Labor and Demographic Economics - - Demographic Economics
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-11 (All new papers)
- NEP-ALL-2009-01-31 (All new papers)
- NEP-DEV-2009-01-31 (Development)
- NEP-EDU-2008-11-11 (Education)
- NEP-EDU-2009-01-31 (Education)
- NEP-SEA-2008-11-11 (South East Asia)
- NEP-SEA-2009-01-31 (South East Asia)
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