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Early Childhood Investments in Human Capital: Parental Resources and Preferences

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  • Sonia Bhalotra

Abstract

This paper investigates the way in which parental human capital investment in young co-resident children varies with their own consumption. It is motivated by rejection of parental altruism in recent research, the unexpectedly small effects of parental income on child outcomes found in a number of studies, and the claim in several historical and anthropological studies of child labour that parents are selfish. Models of child labour and human capital typically assume parental altruism and, in many cases, this assumption is critical to the model. The results suggest that, in the preference function of parents, child human capital is a normal good and that child labour is a bad, consistent with altruism.

Suggested Citation

  • Sonia Bhalotra, 2004. "Early Childhood Investments in Human Capital: Parental Resources and Preferences," Bristol Economics Discussion Papers 04/562, School of Economics, University of Bristol, UK.
    • Handle: RePEc:bri:uobdis:04/562
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    2. Marco Manacorda, 2006. "Child Labor and the Labor Supply of Other Household Members: Evidence from 1920 America," American Economic Review, American Economic Association, vol. 96(5), pages 1788-1801, December.
    3. Krisztina Kis‐Katos & Günther G. Schulze, 2005. "Regulation Of Child Labour," Economic Affairs, Wiley Blackwell, vol. 25(3), pages 24-30, September.

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    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • I2 - Health, Education, and Welfare - - Education
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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