Endowments and Investment within the Household: Evidence from Iodine Supplementation in Tanzania
Standard theories of resource allocation within the household posit that parents’ investments in their children reflect a combination of children’s endowments and parents’ preferences for child quality. We study how changes in children’s cognitive endowments affect the distribution of parental investments amongst siblings, using data from a large-scale iodine supplementation program in Tanzania. We find that parents strongly reinforce the higher cognitive endowments of children who received in utero iodine supplementation, by investing more in vaccinations and early life nutrition. The effect of siblings’ endowments on own investments depends on the extent to which quality across children is substitutable in parents’ utility functions. Neonatal investments, made before cognitive endowments become apparent to parents, are unaffected. Fertility is unaffected as well, suggesting that inframarginal quality improvements can spur investment responses even when the quantity-quality tradeoff is not readily observable.
|Date of creation:||Jun 2011|
|Date of revision:|
|Contact details of provider:|| Postal: PO Box 8269, New Haven CT 06520-8269|
Phone: (203) 432-3610
Fax: (203) 432-3898
Web page: http://www.econ.yale.edu/
More information through EDIRC
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.:
- David Cutler & Winnie Fung & Michael Kremer & Monica Singhal & Tom Vogl, 2010.
"Early-Life Malaria Exposure and Adult Outcomes: Evidence from Malaria Eradication in India,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 2(2), pages 72-94, April.
- Cutler, David M. & Singhal, Monica & Vogl, Tom & Fung, Winnie & Kremer, Michael R., 2010. "Early-Life Malaria Exposure and Adult Outcomes: Evidence from Malaria Eradication in India," Scholarly Articles 5344529, Harvard University Department of Economics.
- Erica Field & Omar Robles & Maximo Torero, 2009. "Iodine Deficiency and Schooling Attainment in Tanzania," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 140-69, October.
- Ashlesha Datar & M. Kilburn & David Loughran, 2010. "Endowments and parental investments in infancy and early childhood," Demography, Springer;Population Association of America (PAA), vol. 47(1), pages 145-162, February.
- Douglas Almond & Lena Edlund & Mårten Palme, 2007.
"Chernobyl's Subclinical Legacy: Prenatal Exposure to Radioactive Fallout and School Outcomes in Sweden,"
NBER Working Papers
13347, National Bureau of Economic Research, Inc.
- Douglas Almond & Lena Edlund & Mårten Palme, 2009. "Chernobyl's Subclinical Legacy: Prenatal Exposure to Radioactive Fallout and School Outcomes in Sweden," The Quarterly Journal of Economics, Oxford University Press, vol. 124(4), pages 1729-1772.
When requesting a correction, please mention this item's handle: RePEc:egc:wpaper:998. 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: (Louise Danishevsky)
If references are entirely missing, you can add them using this form.