IDEAS home Printed from https://ideas.repec.org/p/ifs/cemmap/19-15.html
   My bibliography  Save this paper

Partial insurance and investments in children

Author

Listed:
  • Pedro Carneiro

    () (Institute for Fiscal Studies and University College London)

  • Rita Ginja

    () (Institute for Fiscal Studies and University of Bergen)

Abstract

This paper studies the impact of permanent and transitory shocks to income on parental investments in children. We use panel data on family income, and an index of investments in children in time and goods, from the Children of the National Longitudinal Survey of Youth. Consistent with the literature focusing on non-durable expenditure, we find that there is only partial insurance of parental investments against permanent income shocks, but the magnitude of the estimated responses is small. We cannot reject the hypothesis full insurance against temporary shocks. Another interpretation of our findings is that there is very little insurance available, but the fact that skill is a non-separable function of parental investments over time results in small reactions of these investments to income shocks, especially at later ages.

Suggested Citation

  • Pedro Carneiro & Rita Ginja, 2015. "Partial insurance and investments in children," CeMMAP working papers CWP19/15, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:cemmap:19/15
    as

    Download full text from publisher

    File URL: https://www.ifs.org.uk/uploads/cemmap/wps/cwp191515.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Partial insurance and investments in children By: Pedro Carneiro (Institute for Fiscal Studies and cemmap and UCL) ; Rita Ginja (Institute for Fiscal Studies and University of Uppsala)
      by maximorossi in NEP-LTV blog on 2015-08-17 19:33:01

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:jeborg:v:141:y:2017:i:c:p:210-232 is not listed on IDEAS
    2. Elizabeth M. Caucutt & Lance Lochner, 2012. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," NBER Working Papers 18493, National Bureau of Economic Research, Inc.
    3. Huebener, Mathias & Kühnle, Daniel & Spieß, C. Katharina, 2018. "Parental Leave Policies and Socio-Economic Gaps in Child Development: Evidence from a Substantial Benefit Reform Using Administrative Data," IZA Discussion Papers 11794, Institute for the Study of Labor (IZA).
    4. Emma Tominey, 2013. "Maternity Leave and the Responsiveness of Female Labor Supply to a Household Shock," Discussion Papers 13/11, Department of Economics, University of York.
    5. Iga Magda & Roma Keister, 2018. "Working time flexibility and parental ‘quality time’ spent with children," IBS Working Papers 04/2018, Instytut Badan Strukturalnych.
    6. Emilia Del Bono & Marco Francesconi & Yvonne Kelly & Amanda Sacker, 2016. "Early Maternal Time Investment and Early Child Outcomes," Economic Journal, Royal Economic Society, vol. 126(596), pages 96-135, October.
    7. repec:zbw:espost:180840 is not listed on IDEAS
    8. Stephanie von Hinke & George Leckie, 2017. "Protecting Calorie Intakes against Income Shocks," Bristol Economics Discussion Papers 17/684, Department of Economics, University of Bristol, UK.
    9. repec:spr:izalbr:v:6:y:2017:i:1:d:10.1186_s40172-017-0060-5 is not listed on IDEAS
    10. Tominey, Emma, 2016. "Female labour supply and household employment shocks: Maternity leave as an insurance mechanism," European Economic Review, Elsevier, vol. 87(C), pages 256-271.
    11. C. Aina & D. Sonedda, 2018. "Investment in education and household consumption," Working Paper CRENoS 201806, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    12. Susanne Kuger & Jan Marcus & C. Katharina Spiess, 2017. "Does Quality of Early Childhood Education and Care Affect the Home Learning Environment of Children?," Discussion Papers of DIW Berlin 1687, DIW Berlin, German Institute for Economic Research.
    13. Mathias Huebener & Daniel Kuehnle & C. Katharina Spiess, 2017. "Paid Parental Leave and Child Development: Evidence from the 2007 German Parental Benefit Reform and Administrative Data," Discussion Papers of DIW Berlin 1651, DIW Berlin, German Institute for Economic Research.

    More about this item

    Keywords

    Insurance; human capital; consumption;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ifs:cemmap:19/15. 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: (Emma Hyman). General contact details of provider: http://edirc.repec.org/data/cmifsuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.