Cover: The Response of Household Parental Investment to Child Endowments

The Response of Household Parental Investment to Child Endowments

Published May 6, 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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