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Not Playing Favorites: Parents and the Value of Equal Opportunity

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  • James Berry
  • Rebecca Dizon-Ross
  • Maulik Jagnani

Abstract

We conduct two experiments to identify the value parents place on equality of opportunity when investing in children. The experiments exogenously vary short-run returns to educational investments to identify the weight placed on equalizing "opportunity" (child-level investment) relative to maximizing "returns" (total household earnings) or to equalizing "outcomes" (child-level expected earnings). While parents in both experiments place some weight on maximizing returns, they also display a strong preference for equalizing opportunities and are willing to forgo 15–45 percent of their earnings to do so. Parents in higher-income countries also care about equalizing outcomes, while parents in lower-income countries do not.

Suggested Citation

  • James Berry & Rebecca Dizon-Ross & Maulik Jagnani, 2025. "Not Playing Favorites: Parents and the Value of Equal Opportunity," American Economic Journal: Applied Economics, American Economic Association, vol. 17(3), pages 117-160, July.
    • Handle: RePEc:aea:aejapp:v:17:y:2025:i:3:p:117-60
    DOI: 10.1257/app.20220601
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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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