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Motives for Investment in Human Capital of Children: Evidence from Indonesian Family Life Survey Data

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  • Lakshmi K Raut
  • Lien H Tran

Abstract

Two alternative models of parental investments in children's human capital are considered and tested empirically using the Indonesian Family Life Survey (IFLS). The pure loan model and the reciprocity with two-sided altruism model yield different predictions about the effect of children's education level and number of children on intergenerational transfers. Using these predictions, a sepcification test is carried out to differentiate these two models with the data. The evidence favors the second model of reciprocity with two-sided altruism.

Suggested Citation

  • Lakshmi K Raut & Lien H Tran, 1998. "Motives for Investment in Human Capital of Children: Evidence from Indonesian Family Life Survey Data," Working Papers 199801, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:199801
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    References listed on IDEAS

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    Cited by:

    1. Yacouba Diallo, 2001. "Les déterminants du travail des enfants en Côte d'Ivoire," Documents de travail 55, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    2. Roland Veras Saldanha Júnior & Priscila Azzolini, 2001. "Estoque de Conhecimento, Incerteza e Investimento em Educação: um Modelo Teórico," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 104, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Emla Fitzsimons, 2007. "The Effects of Risk on Education in Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 56(1), pages 1-25, October.

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    More about this item

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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