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Parenting Style and the Development of Human Capital in Children

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  • Marco Cosconati

    (Bank of Italy & IZA)

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    Abstract

    There is little consensus among social science researchers about the effectiveness of alternative parenting strategies in producing desirable child outcomes. Some argue that parents should set strict limits on the activities of their adolescent children, while others believe that adolescents should be given relatively wide discretion. In this paper, I develop and estimate a model of parent-child interaction in order to better understand the relationship between parenting styles and the development of human capital in children. Using data from the NLSY97, the estimates of the model indicate that the best parenting style depends on how much a child values human capital. Setting strict rules increases the study time of a child who places a low value on human capital, but decreases study time for a child who places a high value on human capital. According to the estimates, the impact of a public mandatory curfew, given these offsetting effects, is to increase slightly adolescent human capital.

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    Bibliographic Info

    Paper provided by Society for Economic Dynamics in its series 2011 Meeting Papers with number 854.

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    Date of creation: 2011
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    Handle: RePEc:red:sed011:854

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    1. Gary S. Becker, 1974. "A Theory of Social Interactions," NBER Working Papers 0042, National Bureau of Economic Research, Inc.
    2. Elie Tamer, 2003. "Incomplete Simultaneous Discrete Response Model with Multiple Equilibria," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 70(1), pages 147-165, January.
    3. Sundaram,Rangarajan K., 1996. "A First Course in Optimization Theory," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521497190.
    4. Alessandro Lizzeri & Marciano Siniscalchi, 2006. "Parental Guidance and Supervised Learning," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 1432, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    5. Richard C. Cornes & Emilson C.D. Silva, 1997. "Rotten Kids, Purity and Perfection," Keele Department of Economics Discussion Papers (1995-2001), Department of Economics, Keele University 97/13, Department of Economics, Keele University.
    6. Andrea Moro, 2003. "The Effect Of Statistical Discrimination On Black-White Wage Inequality: Estimating A Model With Multiple Equilibria," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 467-500, 05.
    7. Zvi Eckstein & Kenneth I. Wolpin, 1999. "Why Youths Drop Out of High School: The Impact of Preferences, Opportunities, and Abilities," Econometrica, Econometric Society, Econometric Society, vol. 67(6), pages 1295-1340, November.
    8. Victor Aguirregabiria & Pedro Mira, 1999. "Swapping the Nested Fixed-Point Algorithm: a Class of Estimators for Discrete Markov Decision Models," Computing in Economics and Finance 1999, Society for Computational Economics 332, Society for Computational Economics.
    9. Banks, Jeffrey S. & Sundaram, Rangarajan K., 1998. "Optimal Retention in Agency Problems," Journal of Economic Theory, Elsevier, Elsevier, vol. 82(2), pages 293-323, October.
    10. Sundaram,Rangarajan K., 1996. "A First Course in Optimization Theory," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521497701.
    11. Bruce A. Weinberg, 2001. "An Incentive Model of the Effect of Parental Income on Children," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 109(2), pages 266-280, April.
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