Intra-household Resource Allocation: Do Parents Reduce or Reinforce Child Cognitive Ability Gaps?

Paul Frijters, David Johnston, Manisha Shah () and Michael Shields

No 5153, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Do parents invest more or less in their high ability children? We provide new evidence on this question by comparing observed ability differences and observed investment differences between siblings in the NLSY. To overcome endogeneity issues we use sibling differences in handedness as an instrument for cognitive ability differences, since handedness is a strong determinant of cognitive ability. We find that parents invest more in high ability children, with a one standard deviation increase in child cognitive ability increasing parental investments by approximately one-third of a standard deviation. Consequently, differences in child cognitive ability are enhanced by differential parental investments. This finding has important implications for education policy.

Keywords: handedness; parental investment; cognitive ability; children (search for similar items in EconPapers)
JEL-codes: D13 J1 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2010-08
New Economics Papers: this item is included in nep-cbe, nep-edu, nep-lab and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Demography, 2013, 50 (6), 2187-2208

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Journal Article: Intrahousehold Resource Allocation: Do Parents Reduce or Reinforce Child Ability Gaps? (2013)
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