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The Response of Household Parental Investment to Child Endowments

  • David S. Loughran
  • Ashlesha Datar
  • M. Rebecca Kilburn

The theoretical and empirical literature on parental investment focuses on whether child-specific parental investments reinforce or compensate for a child's initial endowments. However, many parental investments, such as neighborhood quality and family size and structure, are shared wholly or in part among all children in a household. The empirical results of this paper imply that such household parental investments compensate for low endowments, as proxied by low birth weight.

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Paper provided by RAND Corporation Publications Department in its series Working Papers with number 404-1.

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Length: 48 pages
Date of creation: Apr 2008
Date of revision:
Handle: RePEc:ran:wpaper:404-1
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  1. Sandra E Black & Paul J Devereux & Kjell G Salvanes, 2007. "From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes," The Quarterly Journal of Economics, MIT Press, vol. 122(1), pages 409-439, 02.
  2. Cascio, Elizabeth U. & Lewis, Ethan Gatewood, 2005. "Schooling and the AFQT: Evidence from School Entry Laws," IZA Discussion Papers 1481, Institute for the Study of Labor (IZA).
  3. Dalton Conley & Kate Strully & Neil G. Bennett, 2003. "A Pound of Flesh or Just Proxy? Using Twin Differences to Estimate the Effect of Birth Weight on Life Chances," NBER Working Papers 9901, National Bureau of Economic Research, Inc.
  4. Corman, Hope & Chaikind, Stephen, 1998. "The effect of low birthweight on the school performance and behavior of school-aged children," Economics of Education Review, Elsevier, vol. 17(3), pages 307-316, June.
  5. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, May.
  6. Patricio SolĂ­s & Starling G. Pullum & W. Frisbie, 2000. "Demographic models of birth outcomes and infant mortality: An alternative measurement approach," Demography, Springer, vol. 37(4), pages 489-498, November.
  7. Zvi Griliches & Jerry A. Hausman, 1984. "Errors in Variables in Panel Data," NBER Technical Working Papers 0037, National Bureau of Economic Research, Inc.
  8. Bound, John & Solon, Gary, 1999. "Double trouble: on the value of twins-based estimation of the return to schooling," Economics of Education Review, Elsevier, vol. 18(2), pages 169-182, April.
  9. Behrman, Jere R & Pollak, Robert A & Taubman, Paul, 1982. "Parental Preferences and Provision for Progeny," Journal of Political Economy, University of Chicago Press, vol. 90(1), pages 52-73, February.
  10. Jason Boardman & Daniel Powers & Yolanda Padilla & Robert Hummer, 2002. "Low birth weight, social factors, and developmental outcomes among children in the United States," Demography, Springer, vol. 39(2), pages 353-368, May.
  11. Hansen, Karsten T. & Heckman, James J. & Mullen, Kathleen, 2003. "The Effect of Schooling and Ability on Achievement Test Scores," IZA Discussion Papers 826, Institute for the Study of Labor (IZA).
  12. Behrman, Jere R., 1993. "Intrahousehold distribution and the family," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 4, pages 125-187 Elsevier.
  13. David S. Loughran & Ashlesha Datar & M. Rebecca Kilburn, 2008. "The Response of Household Parental Investment to Child Endowments," Working Papers 404-1, RAND Corporation Publications Department.
  14. Janet Currie & Rosemary Hyson, 1999. "Is the Impact of Health Shocks Cushioned by Socioeconomic Status? The Case of Low Birthweight," NBER Working Papers 6999, National Bureau of Economic Research, Inc.
  15. Douglas Almond & Kenneth Y. Chay & David S. Lee, 2005. "The Costs of Low Birth Weight," The Quarterly Journal of Economics, MIT Press, vol. 120(3), pages 1031-1083, August.
  16. Bound, John & Krueger, Alan B, 1991. "The Extent of Measurement Error in Longitudinal Earnings Data: Do Two Wrongs Make a Right?," Journal of Labor Economics, University of Chicago Press, vol. 9(1), pages 1-24, January.
  17. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S143-62, August.
  18. Ashlesha Datar & M. Rebecca Kilburn & David S. Loughran, 2006. "Health Endowments and Parental Investments in Infancy and Early Childhood," Working Papers 367, RAND Corporation Publications Department.
  19. Harold Alderman & Jere R. Behrman & Victor Lavy & Rekha Menon, 2001. "Child Health and School Enrollment: A Longitudinal Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 185-205.
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