Parenting with Patience: Parental Incentives and Child Development

Daniela Del Boca, Christopher Flinn, Ewout Verriest () and Matthew Wiswall ()
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Ewout Verriest: New York University

No 16441, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We construct a dynamic model of child development where forward-looking parents and children jointly take actions to increase the child's cognitive and non-cognitive skills within a Markov Perfect Equilibrium framework. In addition to time and money investments in their child, parents also choose whether to use explicit incentives to increase the child's self-investment, which may reduce the child's future intrinsic motivation to invest by reducing the child's discount factor. We use the estimated model parameters to show that the use of extrinsic motivation has large costs in terms of the child's future incentives to invest in themselves.

Keywords: time allocation; child development; parenting styles (search for similar items in EconPapers)
JEL-codes: D1 J13 (search for similar items in EconPapers)
Pages: 106 pages
Date: 2023-09
New Economics Papers: this item is included in nep-dge, nep-ger, nep-lab, nep-ltv and nep-neu
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Related works:
Working Paper: Parenting with Patience: Parental Incentives and Child Development (2023)
Working Paper: Parenting with Patience: Parental Incentives and Child Development (2023)
Working Paper: Parenting with Patience: Parental Incentives and Child Development (2023)
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