Intergenerational Altruism and Transfers of Time and Money: A Life Cycle Perspective

Uta Bolt (), Eric French, Jamie Hentall MacCuish and Cormac O'Dea
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Uta Bolt: https://ifs.org.uk/people/uta-bolt

No 69, Opportunity and Inclusive Growth Institute Working Papers from Federal Reserve Bank of Minneapolis

Abstract: Parental investments significantly impact children’s outcomes. Exploiting panel data covering individuals from birth to retirement, we estimate child skill production functions and embed them into an estimated dynastic model in which altruistic mothers and fathers make investments in their children. We find that time investments, educational investments, and assortative matching have a greater impact on generating inequality and intergenerational persistence than cash transfers. While education subsidies can reduce inequality, due to an estimated dynamic complementarity between time investments and education, it is crucial to announce them in advance to allow parents to adjust their investments when their children are young.

Keywords: Lifecycle; Intergenerational transfers; Parental investments (search for similar items in EconPapers)
JEL-codes: I0 J00 (search for similar items in EconPapers)
Date: 2023-04-10
New Economics Papers: this item is included in nep-dem and nep-ltv
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Intergenerational Altruism and Transfers of Time and Money: A Life Cycle Perspective (2023)
Working Paper: Intergenerational altruism and transfers of time and money: a life cycle perspective (2023)
Working Paper: Intergenerational Altruism and Transfers of Time and Money: A Lifecycle Perspective (2019)
Working Paper: Intergenerational Altruism and Transfers of Time and Money: A Life-cycle Perspective (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmoi:95950

DOI: 10.21034/iwp.69

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