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Parent-Child Information Frictions and Human Capital Investment: Evidence from a Field Experiment

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  • Peter Bergman

Abstract

This paper studies information frictions between parents and children and their effect on human capital investments. I provide biweekly information to a random sample of parents about their child’s missed assignments. Parents have upwardly biased beliefs about their child’s effort. Providing information attenuates this bias and improves student achievement. Using data from the experiment, I estimate a persuasion game between parents and their children that shows that the treatment effect is due to more accurate beliefs and reduced monitoring costs. Policy simulations from the model demonstrate that improving school reporting or providing more information to parents can increase learning at low cost.

Suggested Citation

  • Peter Bergman, 2021. "Parent-Child Information Frictions and Human Capital Investment: Evidence from a Field Experiment," Journal of Political Economy, University of Chicago Press, vol. 129(1), pages 286-322.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/711410
    DOI: 10.1086/711410
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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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