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Timing of Family Income, Borrowing Constraints and Child Achievement

Maria Humlum

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: In this paper, I investigate the effects of the timing of family income on child achievement production. Detailed administrative data augmented with PISA test scores at age 15 are used to analyze the effects of the timing of family income on child achievement. Contrary to many earlier studies, tests for early borrowing constraints suggest that parents are not constrained in early investments in their children's achievement, and thus that the timing of income does not matter for long-term child outcomes. This is a reasonable result given the setting in a Scandinavian welfare state with generous child and education subsidies. Actually, later family income (age 12-15) is a more important determinant of child achievement than earlier income.

Keywords: child human capital; timing of family income (search for similar items in EconPapers)
JEL-codes: I2 J24 (search for similar items in EconPapers)
Pages: 31
Date: 2008-10-01
New Economics Papers: this item is included in nep-edu, nep-hrm and nep-lab
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https://repec.econ.au.dk/repec/afn/wp/08/wp08_12.pdf (application/pdf)

Related works:
Journal Article: Timing of family income, borrowing constraints, and child achievement (2011) Downloads
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