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Children's Cognitive Abilities and Intrahousehold Parental Investment

  • Andrew Zuppann

    ()

    (University of Houston)

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.

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File URL: http://www.uh.edu/econpapers/RePEc/hou/wpaper/201310847.pdf
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Paper provided by Department of Economics, University of Houston in its series Working Papers with number 201310847.

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Date of creation: 14 Apr 2013
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Handle: RePEc:hou:wpaper:201310847
Contact details of provider: Postal: Houston TX 77023
Web page: http://www.uh.edu/class/economics/

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