The Response of Household Parental Investment to Child Endowments

Published in: Review of Economics of the Household, v. 6, no. 3, Sep. 2008, p. 223-242

Posted on RAND.org on September 01, 2008

by David S Loughran, Ashlesha Datar, M. Rebecca Kilburn

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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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