Intergenerational Altruism and Transfers of Time and Money: A Life Cycle Perspective

Uta Bolt, Eric French, Jamie Hentall MacCuish and Cormac O'Dea

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: Parental investments significantly impact children's outcomes. Exploiting panel data covering individuals from birth to retirement, we estimate child skill production functions and embed them into an estimated dynastic model in which altruistic mothers and fathers make investments in their children. We find that time investments, educational investments, and assortative matching have a greater impact on generating inequality and intergenerational persistence than cash transfers. While education subsidies can reduce inequality, due to an estimated dynamic complementarity between time investments and education, it is crucial to announce them in advance to allow parents to adjust their investments when their children are young.

Date: 2023-11-27
New Economics Papers: this item is included in nep-dge and nep-ltv
Note: ebf26
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econ.cam.ac.uk/sites/default/files/pub ... pe-pdfs/cwpe2374.pdf

Related works:
Working Paper: Intergenerational Altruism and Transfers of Time and Money: A Life Cycle Perspective (2023)
Working Paper: Intergenerational altruism and transfers of time and money: a life cycle perspective (2023)
Working Paper: Intergenerational Altruism and Transfers of Time and Money: A Lifecycle Perspective (2019)
Working Paper: Intergenerational Altruism and Transfers of Time and Money: A Life-cycle Perspective (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:2374

Access Statistics for this paper

More papers in Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge
Bibliographic data for series maintained by Jake Dyer ().