EconPapers    
Economics at your fingertips  
 

Partial insurance and investments in children

Pedro Carneiro () and Rita Ginja ()

No CWP19/15, CeMMAP working papers from Centre for Microdata Methods and Practice, Institute for Fiscal Studies

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: Insurance; human capital; consumption (search for similar items in EconPapers)
JEL-codes: D12 D91 I30 (search for similar items in EconPapers)
Date: 2015-04-15
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)
https://www.ifs.org.uk/uploads/cemmap/wps/cwp191515.pdf (application/pdf)

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:ifs:cemmap:19/15

Ordering information: This working paper can be ordered from
The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE

Access Statistics for this paper

More papers in CeMMAP working papers from Centre for Microdata Methods and Practice, Institute for Fiscal Studies The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE. Contact information at EDIRC.
Bibliographic data for series maintained by Emma Hyman ().

 
Page updated 2020-03-30
Handle: RePEc:ifs:cemmap:19/15