Children's Cognitive Abilities and Intrahousehold Parental Investment
I estimate how new information about children's cognitive abilities leads parents to adjust investment within and across children. I use the National Longitudinal Survey of Youth matched mother-child data to construct measures of both child cognitive ability and parental investment during childhood. I find that parents respond to improvements in a child's cognitive abilities by devoting more resources towards that child. Â I find that positive information about one child leads to compensating investments in other children, evidence that parents have a concern for equity within the household.
|Date of creation:||14 Apr 2013|
|Date of revision:|
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