Substitution Effects in Parental Investments

Loren Brandt (), Aloysius Siow () and Jackie Wang ()
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Jackie Wang: University of Toronto

No 4431, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The paper estimates how parents adjust bride-prices and land divisions to compensate their sons for differences in their schooling investments in rural China. The main estimate implies that when a son receives one yuan less in schooling investment than his brother, he will obtain 0.7 yuan more in observable marital and post-marital transfers as partial compensation. Controlling for unobserved household heterogeneity, planned consumption differences across sons, and a fuller accounting of lifetime transfers are quantitatively important. The empirical findings strongly support the unitary model as a model of resource allocation for sons in traditional agricultural families.

Keywords: marriage market; parental investment; household model; transfers (search for similar items in EconPapers)
JEL-codes: D13 J12 J13 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2009-09
New Economics Papers: this item is included in nep-lab and nep-tra
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Published - Journal of Population Economics, 2013, 28(2), 423-462 [Winner of Kuznet's Price 2015]

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