Parental involvement and Children's human capital: A tax-subsidy experiment

Emin Gahramanov, Rashad Hasanov and Xueli Tang

Economic Modelling, 2020, vol. 85, issue C, 16-29

Abstract: Parental time with children has a significant influence on early childhood development, future accumulation of a wide array of cognitive and non-cognitive skills and the ultimate success of the child. The model presented in this article features endogenous fertility and labour supply while distinguishing between various types of parental time spent with children. We conduct a quantitative analysis to investigate the importance of the role of family for children's skill formation. In the model, parents are subsidized for spending publicly verifiable productive time with their children. Such intervention can significantly enhance the human capital of children, yet it affects the overall labour supply of the primary caretaker in an ambiguous way.

Keywords: Parental investment; Human capital; Cognitive skills; Non-cognitive skills; Fertility; Labor supply; Optimal control (search for similar items in EconPapers)
JEL-codes: C54 C60 D10 D15 H31 H52 J13 J22 J24 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:85:y:2020:i:c:p:16-29

DOI: 10.1016/j.econmod.2019.05.002

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