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Explaining Differences in Education between Foster Children and Biological Children: a Sibling Rivalry Approach. Some Evidence from Indonesia

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  • Karine Marazyan

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper aims at explaining differences in education between foster-children and the biological children of their new household by differences in return to education as suggested by the human capital investment model. Defining this return by the amount of the old-age support the care-givers expect to receive, we assume that foster-children have a lower return to education than biological children, as the former might provide old-age support for both their host and biological parents while the latter to their biological parents only. Given this assumption and if the credit constraints are binding, the model suggests that foster-children will receive less human capital investment if there are in presence of host children than if they are not.In contrast, if parents have aversion against inequality, the prediction reverses: foster-children will receive more human capital investment if there are in presence of host children than if they are not.Using data from Indonesia, we provide some evidence in favor of the credit constraints hypothesis.This suggests that financial support to families who care for both biological and foster-children will enhance the latter education as it would reduce the credit constraints and thus, the induced sibling rivalry.

Suggested Citation

  • Karine Marazyan, 2009. "Explaining Differences in Education between Foster Children and Biological Children: a Sibling Rivalry Approach. Some Evidence from Indonesia," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00290644, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00290644
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00290644v2
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    Keywords

    Foster-Children; Sibling Rivalry; Asia; Indonesia;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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