Motives for investment in human capital of children: evidence from Indonesian Family Life Survey Data

Lakshmi Raut () and Lien H. Tran
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Lien H. Tran: The Rand Corporation

Labor and Demography from EconWPA

Abstract: Two alternative models of parental investments in children's human capital are considered and tested empirically using the Indonesian Family Life Survey (IFLS). The pure loan model and the reciprocity with two-sided altruism model yield different predictions about the effect of children's education level and number of children on intergenerational transfers. Using these predictions, a specification test is carried out to differentiate these two models with the data. The evidence favors the second model of reciprocity with two-sided altruism.

Keywords: Human capital; pure loan; altruism; Indonesian Family Life Survey Data (search for similar items in EconPapers)
JEL-codes: I22 J24 O15 D64 (search for similar items in EconPapers)
Date: 1998-01-20
Note: Type of Document - pdf; prepared on IBM PC - PC-TEX; to print on PostScript; pages: 26; figures: included. For comments and cross references. This draft was presented at the International Economic Association conference on, "\emph{Economics of Reciprocity, Gift-giving and Altruism}", December 18-20, EHESS-Marseille, Center de la Vielle Charit\'{e}, France.
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpla:9801001

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