Finance and Children’s Academic Performance

Qing Hu, Ross Levine (), Chen Lin and Mingzhu Tai

No 26678, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: What is the impact of regulatory reforms that enhance credit market efficiency on children’s human capital? Using a parent-child panel dataset, we find that such reforms reduced children’s academic performance in low-income families. Consistent with the view that financial development entices low-income parents to substitute out of childrearing and into employment with adverse effects on children’s education, we find that among low-income families, regulatory reforms: increased mother’s employment hours, reduced parental supervision and parent-child discussions about school and college, and had bigger adverse effects when mothers were not already working full-time and grandparents were not living with the child.

JEL-codes: G28 I2 J2 (search for similar items in EconPapers)
Date: 2020-01
New Economics Papers: this item is included in nep-lma
Note: CF CH ED LS
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