The Response of Parental Time Investments to the Child’s Skills and Health

Research output: Working paper

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DatePublished - 2017
PublisherIZA Institute of Labor Economics
Original languageEnglish

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NameIZA
No.10993

Abstract

While a large literature has focused on how parental investments respond to differences between siblings in human capital at birth, very 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 investments by considering the time parents spend with their child in doing formative activities. By adopting a child fixed-effect instrumental variable estimation to address endogeneity, we find that parents reinforce for differences in their child’s socio-emotional skills, compensate for changes in her physical health, and are neutral to variation in her cognitive skills.

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