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Motives for investment in human capital of children: evidence from Indonesian Family Life Survey Data

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Author Info
Lakshmi K. Raut (University of Hawaii)
Lien H. Tran (The Rand Corporation)

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Abstract

Two alternative models of parental investments in children's human capital are considered and tested empirically using the Indonesian Family Life Survey (IFLS). The pure loan model and the reciprocity with two-sided altruism model yield different predictions about the effect of children's education level and number of children on intergenerational transfers. Using these predictions, a specification test is carried out to differentiate these two models with the data. The evidence favors the second model of reciprocity with two-sided altruism.

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File URL: http://129.3.20.41/eps/lab/papers/9801/9801001.pdf
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Paper provided by EconWPA in its series Labor and Demography with number 9801001.

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Length: 26 pages
Date of creation: 20 Jan 1998
Date of revision:
Handle: RePEc:wpa:wuwpla:9801001

Note: Type of Document - pdf; prepared on IBM PC - PC-TEX; to print on PostScript; pages: 26; figures: included. For comments and cross references. This draft was presented at the International Economic Association conference on, "\emph{Economics of Reciprocity, Gift-giving and Altruism}", December 18-20, EHESS-Marseille, Center de la Vielle Charit\'{e}, France.
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Related research
Keywords: Human capital; pure loan; altruism; Indonesian Family Life Survey Data;

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Find related papers by JEL classification:
I22 - Health, Education, and Welfare - - Education - - - Educational Finance
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
D64 - Microeconomics - - Welfare Economics - - - Altruism

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Gary S. Becker, 1974. "A Theory of Social Interactions," NBER Working Papers 0042, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June. [Downloadable!] (restricted)
  3. Lakshmi K. Raut, 1997. "Learning to Perfect Manipulation: Implications for Fertility, Savings, and Old-Age Social Security," Labor and Demography 9705003, EconWPA. [Downloadable!]
    Other versions:
  4. Raut, L. K., 1990. "Capital accumulation, income distribution and endogenous fertility in an overlapping generations general equilibrium model," Journal of Development Economics, Elsevier, vol. 34(1-2), pages 123-150, November. [Downloadable!] (restricted)
  5. Gary S. Becker & Kevin M. Murphy & Robert F. Tamura, 1990. "Human Capital, Fertility, and Economic Growth," NBER Working Papers 3414, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Hayashi, Fumio, 1995. "Is the Japanese Extended Family Altruistically Linked? A Test Based on Engel Curves," Journal of Political Economy, University of Chicago Press, vol. 103(3), pages 661-74, June. [Downloadable!] (restricted)
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  7. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, . [Downloadable!] (restricted)
  8. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-98, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Yacouba Diallo, 2001. "Les déterminants du travail des enfants en Côte d'Ivoire," Documents de travail 55, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV. [Downloadable!]
  2. Roland Veras Saldanha Júnior & Priscila Azzolini, 2001. "Estoque de Conhecimento, Incerteza e Investimento em Educação: um Modelo Teórico," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 104, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
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