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Sibling Differences in Educational Polygenic Scores: How Do Parents React?

Author

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  • Sanz-de-Galdeano, Anna

    (Universidad de Alicante)

  • Terskaya, Anastasia

    (University of Barcelona)

Abstract

We take advantage of recent advances in behavioral genetics to revisit a classic question in economics: how do parents respond to children's endowments and to differences in endowments among siblings? Parental investment decisions depend both on parental preferences regarding inequality in the distribution of their children's quality and on how costly it is for parents to add to their children's quality by investing in their human capital (or the price effect). Our empirical strategy allows us to isolate the effect of parental preferences regarding equality from the price effect, a distinction that cannot be made when relying on sibling or twin fixed-effects models. Importantly, we use genetic variants that predict educational attainment as a measure of children's educational endowments. Individuals' genetic makeup is fixed at conception, so these indicators cannot be affected by parental investment decisions. We find evidence that parents of non-twin siblings display inequality aversion and, given the absolute endowment level of one child, they invest more in him/her if his/her sibling is better-endowed. In contrast, parents of twins do not significantly react to endowment differences among their children, likely because it is difficult to provide differential parental investments across children of exactly the same age.

Suggested Citation

  • Sanz-de-Galdeano, Anna & Terskaya, Anastasia, 2019. "Sibling Differences in Educational Polygenic Scores: How Do Parents React?," IZA Discussion Papers 12375, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12375
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    Cited by:

    1. Pietro Biroli & Titus J. Galama & Stephanie von Hinke & Hans van Kippersluis & Cornelius A. Rietveld & Kevin Thom, 2022. "The Economics and Econometrics of Gene-Environment Interplay," Papers 2203.00729, arXiv.org.
    2. Mikkel Aagaard Houmark & Victor Ronda & Michael Rosholm, 2024. "The Nurture of Nature and the Nature of Nurture: How Genes and Investments Interact in the Formation of Skills," American Economic Review, American Economic Association, vol. 114(2), pages 385-425, February.
    3. Brunello, Giorgio & Sanz-de-Galdeano, Anna & Terskaya, Anastasia, 2020. "Not only in my genes: The effects of peers’ genotype on obesity," Journal of Health Economics, Elsevier, vol. 72(C).
    4. Hans Kippersluis & Pietro Biroli & Rita Dias Pereira & Titus J. Galama & Stephanie Hinke & S. Fleur W. Meddens & Dilnoza Muslimova & Eric A. W. Slob & Ronald Vlaming & Cornelius A. Rietveld, 2023. "Overcoming attenuation bias in regressions using polygenic indices," Nature Communications, Nature, vol. 14(1), pages 1-16, December.
    5. Sanz-de-Galdeano, Anna & Terskaya, Anastasia & Upegui, Angie, 2020. "Association of a Genetic Risk Score with BMI along the Life-Cycle: Evidence from Several US Cohorts," IZA Discussion Papers 13671, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    intra-household allocation of resources; educational polygenic scores; parental investments; endogenous fertility; add health;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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