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Finance and Children’s Academic Performance


  • Qing Hu
  • Ross Levine
  • Chen Lin
  • Mingzhu Tai


What is the impact of regulatory reforms that enhance credit market efficiency on children’s human capital? Using a parent-child panel dataset, we find that such reforms reduced children’s academic performance in low-income families. Consistent with the view that financial development entices low-income parents to substitute out of childrearing and into employment with adverse effects on children’s education, we find that among low-income families, regulatory reforms: increased mother’s employment hours, reduced parental supervision and parent-child discussions about school and college, and had bigger adverse effects when mothers were not already working full-time and grandparents were not living with the child.

Suggested Citation

  • Qing Hu & Ross Levine & Chen Lin & Mingzhu Tai, 2020. "Finance and Children’s Academic Performance," NBER Working Papers 26678, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:26678
    Note: CF CH ED LS

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    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • I2 - Health, Education, and Welfare - - Education
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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