EconPapers    
Economics at your fingertips  
 

Partial Insurance and Investments in Children

Pedro Carneiro () and Rita Ginja ()

No 10557, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper studies the impact of permanent and transitory shocks to income on parental investments in children. We use panel data on family income, and an index of investments in children in time and goods, from the Children of the National Longitudinal Survey of Youth. Consistent with the literature focusing on non-durable expenditure, we find that there is only partial insurance of parental investments against permanent income shocks, but the magnitude of the estimated responses is small. We cannot reject the hypothesis full insurance against temporary shocks. Another interpretation of our findings is that there is very little insurance available, but the fact that skill is a non-separable function of parental investments over time results in small reactions of these investments to income shocks, especially at later ages.

Keywords: human capital; insurance (search for similar items in EconPapers)
JEL-codes: J1 (search for similar items in EconPapers)
Date: 2015-04
New Economics Papers: this item is included in nep-ias and nep-ltv
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=10557 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Partial Insurance and Investments in Children (2016) Downloads
Working Paper: Partial insurance and investments in children (2015) Downloads
Working Paper: Partial Insurance and Investments in Children (2015) Downloads
Working Paper: Partial Insurance and Investments in Children (2012) Downloads
Working Paper: Partial Insurance and Investments in Children (2012) Downloads
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:cpr:ceprdp:10557

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=10557

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2020-03-29
Handle: RePEc:cpr:ceprdp:10557