Parental Preference, Heterogeneity, and Human Capital Inequality
In this article, I provide an empirical account of the human capital investment behavior of parents in the face of endowment differences among siblings. The data set used contains a three-wave panel of 4,030 individuals. The article presents a rare case in which endowments are measured explicitly. Health endowments are estimated from dynamic health production functions, while educational endowments are obtained from test scores. The simple score of the standard Raven's Colored Progressive Matrix (CPM) test is used to measure educational endowments. I use estimation procedures that combine an instrumental variables method with panel data estimators to control for endogeneity and heterogeneity. The results suggest that parents compensate for initial differences in health but reinforce initial educational differences among siblings. Hence, an educational subsidy aimed at reducing inequality may end up reinforcing the inequality that might exist in the absence of such subsidy. When parents invest more educational human capital in the able children, an educational subsidy aimed at reducing inequality may end up reinforcing the inequality that might exist in the absence of such subsidy. The same cannot be said about health.
Volume (Year): 53 (2005)
Issue (Month): 2 (January)
|Contact details of provider:|| Web page: http://www.journals.uchicago.edu/EDCC/|
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.:
- Behrman, Jere R., 1988. "Nutrition, health, birth order and seasonality : Intrahousehold allocation among children in rural India," Journal of Development Economics, Elsevier, vol. 28(1), pages 43-62, February.
- Olsen, Randall J & Wolpin, Kenneth I, 1983. "The Impact of Exogenous Child Mortality on Fertility: A Waiting Time Regression with Dynamic Regressors," Econometrica, Econometric Society, vol. 51(3), pages 731-749, May.
- Pitt, Mark M & Rosenzweig, Mark R & Hassan, Md Nazmul, 1990.
"Productivity, Health, and Inequality in the Intrahousehold Distribution of Food in Low-Income Countries,"
American Economic Review,
American Economic Association, vol. 80(5), pages 1139-1156, December.
- Pitt, Mark M. & Rosenzweig, Mark R. & Hassan, Md. Nazmul, 1989. "Productivity, Health and Inequality in the Intrahousehold Distribution of Food in Low-Income Countries," Bulletins 7480, University of Minnesota, Economic Development Center.
- Behrman, Jere R & Pollak, Robert A & Taubman, Paul, 1982. "Parental Preferences and Provision for Progeny," Journal of Political Economy, University of Chicago Press, vol. 90(1), pages 52-73, February.
- Quisumbing, A.R., 1991.
"Intergenerational Transfers in Philippine Rice Villages: Gender Differences in Traditional Inheritance Customs,"
632, Yale - Economic Growth Center.
- Quisumbing, Agnes R., 1994. "Intergenerational transfers in Philippine rice villages : Gender differences in traditional inheritance customs," Journal of Development Economics, Elsevier, vol. 43(2), pages 167-195, April.
- Stefan Dercon & Pramila Krishnan, 2000.
"In Sickness and in Health: Risk Sharing within Households in Rural Ethiopia,"
Journal of Political Economy,
University of Chicago Press, vol. 108(4), pages 688-727, August.
- Pramila Krishnan & Stefan Dercon, 1997. "In sickness and in health ... risk-sharing within households in rural Ethiopia," CSAE Working Paper Series 1997-12, Centre for the Study of African Economies, University of Oxford.
- repec:oxf:wpaper:wps/1997-12 is not listed on IDEAS
- Rosenzweig, Mark R & Schultz, T Paul, 1982. "Market Opportunities, Genetic Endowments, and Intrafamily Resource Distribution: Child Survival in Rural India," American Economic Review, American Economic Association, vol. 72(4), pages 803-815, September.
When requesting a correction, please mention this item's handle: RePEc:ucp:ecdecc:y:2005:v:53:i:2:p:381-407. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)
If references are entirely missing, you can add them using this form.