Original title:
Whoever has will be given more: child endowment and human capital investment
Authors:
Borga, Liyousew Gebremedhin ; Pidkuyko, M. Document type: Research reports
Year:
2018
Language:
eng Series:
CERGE-EI Working Paper Series, volume: 616 Abstract:
Using a unique longitudinal survey from Ethiopia, we investigate whether resource constrained\nparents reinforce or attenuate differences in early abilities between their children. We propose a simple model that allows for sibling interactions. To overcome the endogeneity associated with measures of endowment, we construct a measure of human capital at birth that is plausibly net of prenatal investment. We estimate a sibling fixed-effect model to account for bias due to unobserved family-specific heterogeneity. We find that parents reinforce educational inequality: inherently healthy children are more likely to attend preschool, be enrolled in elementary school, and have more expenses incurred towards their education. Health inputs are allocated in a compensatory manner.\n
Keywords:
cognitive ability; health endowment; intrahousehold allocation Project no.: GBP402/12/G130 (CEP) Funding provider: GA ČR