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Human Capital Investments in Children: A Comparative Analysis of the Role of Parent-Child Shared Time in Selected Countries

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Author Info

  • Österbacka, Eva

    () (Abo Akademi University)

  • Merz, Joachim

    () (Leuphana University Lüneburg)

  • Zick, Cathleen D.

    () (University of Utah)

Abstract

Parents invest in their children's human capital in several ways. We investigate the extent to which the levels and composition of parent-child time varies across countries with different welfare regimes: Finland, Germany and the United States. We test the hypothesis of parent-child time as a form of human capital investment in children using a propensity score treatment effects approach that accounts for the possible endogenous nature of time use and human capital investment. Result: There is considerable evidence of welfare regime effects on parent-child shared time. Our results provide mixed support for the hypothesis that non-care related parent-child time is human capital enriching. The strongest support is found in the case of leisure time and eating time.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5084.

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Length: 35 pages
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5084

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Keywords: parent-child time; comparative research; welfare regimes; Finland; Germany; USA; treatment effects; propensity score matching;

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References

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  1. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20035, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  2. Satvika Chalasani, 2007. "The changing relationship between parents’ education and their time with children," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 4(1), pages 93-117, September.
  3. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 99-124.
  4. Gary S. Becker & Nigel Tomes, . "Human Capital and the Rise and Fall of Families," University of Chicago - Population Research Center 84-10, Chicago - Population Research Center.
  5. Klevmarken, N.A., 1998. "Microeconomic Analysis of Time-Use Data. Did We Reach the Promised Land?," Papers 1998-12, Uppsala - Working Paper Series.
  6. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," NBER Working Papers 6699, National Bureau of Economic Research, Inc.
  7. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
  8. Suzanne Bianchi, 2000. "Maternal employment and time with children: Dramatic change or surprising continuity?," Demography, Springer, vol. 37(4), pages 401-414, November.
  9. Merz, Joachim & Wolff, Klaus G, 1993. "The Shadow Economy: Illicit Work and Household Production: A Microanalysis of West Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(2), pages 177-94, June.
  10. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 19 Jul 2012.
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Cited by:
  1. Joachim Merz & Tim Rathjen, 2011. "Zeit- und Einkommensarmut von Freien Berufen und Unternehmern," FFB-Discussionpaper 89, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  2. Heineck, Guido & Wölfel, Oliver, 2010. "Parental risk attitudes and children's secondary school track choice," IAB Discussion Paper 201019, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Joachim Merz & Henning Stolze, 2010. "Kumulation von Querschnitten - Evaluierung alternativer Konzepte für die kumulierten laufenden Wirtschaftsrechnungen 1999 bis 2003 im Vergleich zur Einkommens- und Verbrauchsstichprobe 2003," FFB-Discussionpaper 85, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  4. Dominik Hanglberger, 2011. "Arbeitszufriedenheit im internationalen Vergleich," FFB-Discussionpaper 86, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  5. Patricia Eilsberger & Markus Zwick, 2011. "Geschlechterspezifische Einkommensunterschiede bei Selbständigen als Freiberufler und Gewerbetreibende im Vergleich zu abhängig Beschäftigten – Ein empirischer Vergleich auf der Grundlage steuers," FFB-Discussionpaper 93, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.

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