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Biological versus foster children education : the old-age support motive as a catch-up determinant ? Some evidence from Indonesia

This paper aims at explaining differences in education among foster-children and between foster and biological children in developing countries. Foster-children whose biological parents are alive may provide old-age support for both their host and biological parents. Therefore foster-children have lower returns to education than biological children and should receive less human capital investment in household where both types of children live together. However, in households where foster-children are alone, host parents will over-invest in their education to ensure that the expected old-age support will equal a minimum amount to survive. Using data from Indonesia, we provide some evidence supporting our hypothesis.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2008/V08042.pdf
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Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number v08042.

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Length: 26 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:mse:cesdoc:v08042
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