May 6, 2008
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
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.