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Inter-generational effect of parental time and its policy implications

  • Zhu, Guozhong
  • Vuralz, Gulfer

Why do parents with more human capital spend more time teaching and taking care of their children, in spite of the higher opportunity cost? How does this aect inter-generational mobility and wage inequality? Does this have any implications on the policy that provides public schooling through income taxation? We develop and estimate a theoretical model to answer these questions, in the light that parental time investment is a powerful means of transmitting human capital inter-generationally.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40670.

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Date of creation: May 2012
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Handle: RePEc:pra:mprapa:40670
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