Do parental time investments react to changes in child's skills and health?

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JournalEuropean economic review
DateAccepted/In press - 28 May 2020
DateE-pub ahead of print - 4 Jun 2020
DatePublished (current) - Aug 2020
Volume127
Number of pages30
Early online date4/06/20
Original languageEnglish

Abstract

Parental time investment decisions have been found to have important effects on child development; however, little is known about the response of parents to changes in their child's human capital across time. Using the Longitudinal Study of Australian Children, we measure time investments considering the time young children spend, with or without parents, in different activities. By adopting a child fixed-effect instrumental variable estimation, we find that parents reinforce for high socio-emotional skills by spending more time socialising with their child and compensate for low cognitive skills by increasing the time the child spends in learning activities.

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©2020 The Authors.

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