Inter-generational effect of parental time and its policy implications

Guozhong Zhu and Gulfer Vural

Journal of Economic Dynamics and Control, 2013, vol. 37, issue 9, 1833-1851

Abstract: Motivated by the empirical fact that parents with more human capital spend more time teaching and taking care of their children, we develop and estimate a theoretical model in which altruistic parents pass their human capital on in two ways: goods investment and time investment. Based on the estimated model, we quantitatively assess how the two types of investment affect wage inequality and inter-generational mobility. Using the model to study the impacts of a public policy that taxes income to finance public schooling, we find significantly different policy effects in our model than in a model where time investment does not respond endogenously to the policy.

Keywords: Human capital production; Parental time investment; Wage inequality; Earnings persistence; Public schooling (search for similar items in EconPapers)
JEL-codes: E20 R20 R30 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165188913000900
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Inter-generational effect of parental time and its policy implications (2012)
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:eee:dyncon:v:37:y:2013:i:9:p:1833-1851

DOI: 10.1016/j.jedc.2013.04.013

Access Statistics for this article

Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

More articles in Journal of Economic Dynamics and Control from Elsevier
Bibliographic data for series maintained by Catherine Liu ().