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Intrahousehold resource allocation: do parents reduce or reinforce child ability gaps?

Frijters, Paul, Johnston, David W., Shah, Manisha and Shields, Michael A. (2013) Intrahousehold resource allocation: do parents reduce or reinforce child ability gaps? Demography, 50 (6). pp. 2187-2208. ISSN 0070-3370

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Identification Number: 10.1007/s13524-013-0224-2

Abstract

Do parents invest more or less in their high-ability children? We provide new evidence on this question by comparing observed ability differences and observed investment differences between siblings living in the United States. To overcome endogeneity issues, we use sibling differences in handedness as an instrument for cognitive ability differences. We find that parents invest more in high-ability children, with a 1 standard deviation increase in child cognitive ability increasing parental investments by approximately one-third of a standard deviation. Consequently, differences in child cognitive ability are enhanced by differential parental investments.

Item Type: Article
Official URL: https://link.springer.com/journal/13524
Additional Information: © 2013 Population Association of America
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HQ The family. Marriage. Woman
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 07 Feb 2018 16:52
Last Modified: 30 Jan 2019 19:25
URI: http://eprints.lse.ac.uk/id/eprint/86681

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