IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp10993.html
   My bibliography  Save this paper

The Response of Parental Time Investments to the Child's Skills and Health

Author

Listed:
  • Nicoletti, Cheti

    (University of York)

  • Tonei, Valentina

    (University of Southampton)

Abstract

Recent empirical research in family economics has shown the importance of parental investments on child's human capital development, but it is still not clear whether parents respond to changes across time in their child's skills and health. Using the Longitudinal Study of Australian Children, we measure parental investments by considering the time parents spend with their child doing formative activities. By adopting a child fixed-effect instrumental variable estimation to address endogeneity issues, we find that parents reinforce for differences in their child's socio-emotional skills, compensate for changes in her physical health, and are neutral to variation in her cognitive skills.

Suggested Citation

  • Nicoletti, Cheti & Tonei, Valentina, 2017. "The Response of Parental Time Investments to the Child's Skills and Health," IZA Discussion Papers 10993, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10993
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp10993.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Heather Royer, 2009. "Separated at Girth: US Twin Estimates of the Effects of Birth Weight," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 49-85, January.
    2. Douglas Almond & Bhashkar Mazumder, 2013. "Fetal Origins and Parental Responses," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 37-56, May.
    3. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 4, number 4, June.
    4. Attanasio, Orazio & Cattan, Sarah & Fitzsimons, Emla & Meghir, Costas & Rubio-Codina, Marta, 2015. "Estimating the Production Function for Human Capital: Results from a Randomized Control Trial in Colombia," IZA Discussion Papers 8856, Institute of Labor Economics (IZA).
    5. Mario Fiorini & Michael P. Keane, 2014. "How the Allocation of Children's Time Affects Cognitive and Noncognitive Development," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 787-836.
    6. Mark R. Rosenzweig & Junsen Zhang, 2009. "Do Population Control Policies Induce More Human Capital Investment? Twins, Birth Weight and China's "One-Child" Policy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 1149-1174.
    7. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    8. John Parman, "undated". "Childhood Health and Sibling Outcomes: The Shared Burden of the 1918 Influenza Pandemic," Working Papers 121, Department of Economics, College of William and Mary.
    9. Daniela Del Boca & Christopher Flinn & Matthew Wiswall, 2014. "Household Choices and Child Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 137-185.
    10. O. Ashenfelter & D. Card (ed.), 2011. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 4, number 4.
    11. Douglas Almond & Lena Edlund & Mårten Palme, 2009. "Chernobyl's Subclinical Legacy: Prenatal Exposure to Radioactive Fallout and School Outcomes in Sweden," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1729-1772.
    12. O. Ashenfelter & D. Card (ed.), 2011. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 4, number 5.
    13. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    14. Elizabeth M. Caucutt & Lance Lochner, 2020. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 1065-1147.
    15. Behrman, Jere R & Pollak, Robert A & Taubman, Paul, 1982. "Parental Preferences and Provision for Progeny," Journal of Political Economy, University of Chicago Press, vol. 90(1), pages 52-73, February.
    16. Del Bono, Emilia & Ermisch, John, 2009. "Birth weight and the dynamics of early cognitive and behavioural development," ISER Working Paper Series 2009-16, Institute for Social and Economic Research.
    17. Pedro Carneiro & Katrine V. Løken & Kjell G. Salvanes, 2015. "A Flying Start? Maternity Leave Benefits and Long-Run Outcomes of Children," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 365-412.
    18. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    19. Erik Hanushek & F. Welch (ed.), 2006. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 1, number 1, June.
    20. Emilia Del Bono & Marco Francesconi & Yvonne Kelly & Amanda Sacker, 2016. "Early Maternal Time Investment and Early Child Outcomes," Economic Journal, Royal Economic Society, vol. 126(596), pages 96-135, October.
    21. Ashlesha Datar & M. Kilburn & David Loughran, 2010. "Endowments and parental investments in infancy and early childhood," Demography, Springer;Population Association of America (PAA), vol. 47(1), pages 145-162, February.
    22. Rosales-Rueda, Maria Fernanda, 2014. "Family investment responses to childhood health conditions: Intrafamily allocation of resources," Journal of Health Economics, Elsevier, vol. 37(C), pages 41-57.
    23. C. Russell Hill & Frank P. Stafford, 1974. "Allocation of Time to Preschool Children and Educational Opportunity," Journal of Human Resources, University of Wisconsin Press, vol. 9(3), pages 323-341.
    24. Pitt, Mark M & Rosenzweig, Mark R & Hassan, Md Nazmul, 1990. "Productivity, Health, and Inequality in the Intrahousehold Distribution of Food in Low-Income Countries," American Economic Review, American Economic Association, vol. 80(5), pages 1139-1156, December.
    25. Paul Frijters & David Johnston & Manisha Shah & Michael Shields, 2013. "Intrahousehold Resource Allocation: Do Parents Reduce or Reinforce Child Ability Gaps?," Demography, Springer;Population Association of America (PAA), vol. 50(6), pages 2187-2208, December.
    26. Almlund, Mathilde & Duckworth, Angela Lee & Heckman, James & Kautz, Tim, 2011. "Personality Psychology and Economics," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 1-181, Elsevier.
    27. Rosenzweig, Mark R & Wolpin, Kenneth I, 1995. "Sisters, Siblings, and Mothers: The Effect of Teen-Age Childbearing on Birth Outcomes in a Dynamic Family Context," Econometrica, Econometric Society, vol. 63(2), pages 303-326, March.
    28. Josh Kinsler & Ronni Pavan, 2016. "Parental Beliefs and Investment in Children: The Distortionary Impact of Schools," Working Papers 2016-029, Human Capital and Economic Opportunity Working Group.
    29. Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 12, pages 697-812, Elsevier.
    30. repec:esx:essedp:756 is not listed on IDEAS
    31. Orazio P. Attanasio, 2015. "The Determinants Of Human Capital Formation During The Early Years Of Life: Theory, Measurement, And Policies," Journal of the European Economic Association, European Economic Association, vol. 13(6), pages 949-997, December.
    32. Brandon J. Restrepo, 2016. "Parental investment responses to a low birth weight outcome: who compensates and who reinforces?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 969-989, October.
    33. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 257-298, National Bureau of Economic Research, Inc.
    34. Venkataramani, Atheendar S., 2012. "Early life exposure to malaria and cognition in adulthood: Evidence from Mexico," Journal of Health Economics, Elsevier, vol. 31(5), pages 767-780.
    35. Joseph Price, 2008. "Parent-Child Quality Time: Does Birth Order Matter?," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
    36. Erik Hanushek & F. Welch (ed.), 2006. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 2, number 2, June.
    37. Flavio Cunha, 2013. "Eliciting Maternal Beliefs about the Technology of Skill Formation," 2013 Meeting Papers 1051, Society for Economic Dynamics.
    38. Mark R. Rosenzweig & Kenneth I. Wolpin, 1988. "Heterogeneity, Intrafamily Distribution, and Child Health," Journal of Human Resources, University of Wisconsin Press, vol. 23(4), pages 437-461.
    39. Franz Westermaier & Brant Morefield & Andrea Mühlenweg, 2013. "Impacts of Parental Health Shocks on Children’s NonCognitive Skills," MAGKS Papers on Economics 201312, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    40. Behrman, Jere R & Rosenzweig, Mark R & Taubman, Paul, 1994. "Endowments and the Allocation of Schooling in the Family and in the Marriage Market: The Twins Experiment," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1131-1174, December.
    41. Elaine Kelly, 2011. "The Scourge of Asian Flu: In utero Exposure to Pandemic Influenza and the Development of a Cohort of British Children," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 669-694.
    42. Emilia Del Bono & John Ermisch & Marco Francesconi, 2012. "Intrafamily Resource Allocations: A Dynamic Structural Model of Birth Weight," Journal of Labor Economics, University of Chicago Press, vol. 30(3), pages 657-706.
    43. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    44. Stewart, Jay, 2013. "Tobit or not Tobit?," Journal of Economic and Social Measurement, IOS Press, issue 3, pages 263-290.
    45. Flavio Cunha & James J. Heckman, 2008. "Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    46. Jonathan Guryan & Erik Hurst & Melissa Kearney, 2008. "Parental Education and Parental Time with Children," Journal of Economic Perspectives, American Economic Association, vol. 22(3), pages 23-46, Summer.
    47. Matthew Gray & Diana Smart, 2009. "Growing Up in Australia: The Longitudinal Study of Australian Children: A Valuable New Data Source for Economists," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 42(3), pages 367-376, September.
    48. Amy Hsin, 2012. "Is Biology Destiny? Birth Weight and Differential Parental Treatment," Demography, Springer;Population Association of America (PAA), vol. 49(4), pages 1385-1405, November.
    49. Junjian Yi & James J. Heckman & Junsen Zhang & Gabriella Conti, 2015. "Early Health Shocks, Intra†household Resource Allocation and Child Outcomes," Economic Journal, Royal Economic Society, vol. 125(588), pages 347-371, November.
    50. Anna Aizer & Flávio Cunha, 2012. "The Production of Human Capital: Endowments, Investments and Fertility," NBER Working Papers 18429, National Bureau of Economic Research, Inc.
    51. Morefield, Brant & Mühlenweg, Andrea M. & Westermaier, Franz, 2011. "Impacts of parental health on children's development of personality traits and problem behavior: Evidence from parental health shocks," ZEW Discussion Papers 11-049, ZEW - Leibniz Centre for European Economic Research.
    52. David Loughran & Ashlesha Datar & M. Kilburn, 2008. "The response of household parental investment to child endowments," Review of Economics of the Household, Springer, vol. 6(3), pages 223-242, September.
    53. Keen, Michael, 1986. "Zero Expenditures and the Estimation of Engel Curves," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(3), pages 277-286, July.
    54. Amy Hsin, 2009. "Parent’s Time with Children: Does Time Matter for Children’s Cognitive Achievement?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 93(1), pages 123-126, August.
    55. Achyuta R. Adhvaryu & Anant Nyshadham, 2012. "Schooling, Child Labor, and the Returns to Healthcare in Tanzania," Journal of Human Resources, University of Wisconsin Press, vol. 47(2), pages 364-396.
    56. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    57. David S Loughran & Ashlesha Datar & M. Rebecca Kilburn, 2008. "The Response of Household Parental Investment to Child Endowments," Working Papers WR-404-1, RAND Corporation.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joseph Price & Luke P. Rodgers & Jocelyn S. Wikle, 2021. "Dinner timing and human capital investments in children," Review of Economics of the Household, Springer, vol. 19(4), pages 1047-1075, December.
    2. Savelyev, Peter A. & Ward, Benjamin C. & Krueger, Robert F. & McGue, Matt, 2022. "Health endowments, schooling allocation in the family, and longevity: Evidence from US twins," Journal of Health Economics, Elsevier, vol. 81(C).
    3. Borra, Cristina & Iacovou, Maria & Sevilla, Almudena, 2023. "Adolescent development and the math gender gap," European Economic Review, Elsevier, vol. 158(C).
    4. Elena Claudia Meroni & Daniela Piazzalunga & Chiara Pronzato, 2022. "Allocation of time and child socio-emotional skills," Review of Economics of the Household, Springer, vol. 20(4), pages 1155-1192, December.
    5. Bigoni, Maria & Bortolotti, Stefania & Fort, Margherita & Guarini, Annalisa & Iorio, Daniela & Monfardini, Chiara & Sansavini, Alessandra & Sansone, Davide & Suttora, Chiara, 2023. "A New Time-Use Diary App to Measure Parental Investments," IZA Discussion Papers 16661, Institute of Labor Economics (IZA).
    6. Nguyen, Ha Trong & Christian, Hayley & Le, Huong Thu & Connelly, Luke & Zubrick, Stephen R. & Mitrou, Francis, 2021. "The impact of weather on time allocation to physical activity and sleep of child-parent dyads," GLO Discussion Paper Series 886, Global Labor Organization (GLO).
    7. Taryn W. Morrissey, 2023. "The minimum wage and parent time use," Review of Economics of the Household, Springer, vol. 21(3), pages 1043-1062, September.
    8. Nicoletti, Cheti & Sevilla, Almudena & Tonei, Valentina, 2022. "Gender stereotypes in the family," LSE Research Online Documents on Economics 118044, London School of Economics and Political Science, LSE Library.
    9. Ha Trong Nguyen & Luke B. Connelly & Huong Thu Le & Francis Mitrou & Catherine L. Taylor & Stephen R. Zubrick, 2020. "Ethnicity differentials in academic achievements: the role of time investments," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(4), pages 1381-1418, October.
    10. Nicoletti, Cheti & Tonei, Valentina, 2020. "Do parental time investments react to changes in child’s skills and health?," European Economic Review, Elsevier, vol. 127(C).
    11. Shelly Lundberg, 2020. "Educational gender gaps," Southern Economic Journal, John Wiley & Sons, vol. 87(2), pages 416-439, October.
    12. Abhishek Dureja & Digvijay S. Negi, 2024. "Birth Order Effects in Maternal Health-Seeking Behavior: Evidence from India," Working Papers 118, Ashoka University, Department of Economics.
    13. Flavia Coda Moscarola & Daniela Del Boca & Giovanna Paladino, 2024. "Intergenerational Transmission of Preferences and Parental Behaviours," CESifo Working Paper Series 10902, CESifo.
    14. Chang, Grace, 2022. "How is adolescents' time allocation associated with their self-esteem and self-efficacy? Evidence from four developing countries," LSE Research Online Documents on Economics 115059, London School of Economics and Political Science, LSE Library.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicoletti, Cheti & Tonei, Valentina, 2020. "Do parental time investments react to changes in child’s skills and health?," European Economic Review, Elsevier, vol. 127(C).
    2. Savelyev, Peter A. & Ward, Benjamin C. & Krueger, Robert F. & McGue, Matt, 2022. "Health endowments, schooling allocation in the family, and longevity: Evidence from US twins," Journal of Health Economics, Elsevier, vol. 81(C).
    3. Francesconi, Marco & Heckman, James J, 2015. "Symposium on Child Development and Parental Investment: Introduction," Economics Discussion Papers 16868, University of Essex, Department of Economics.
    4. Brandon J. Restrepo, 2016. "Parental investment responses to a low birth weight outcome: who compensates and who reinforces?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 969-989, October.
    5. Liyousew G. Borga & Myroslav Pidkuyko, 2018. "Whoever Has Will Be Given More: Child Endowment and Human Capital Investment," CERGE-EI Working Papers wp616, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    6. Michael Grätz & Florencia Torche, 2016. "Compensation or Reinforcement? The Stratification of Parental Responses to Children’s Early Ability," Demography, Springer;Population Association of America (PAA), vol. 53(6), pages 1883-1904, December.
    7. Danyelle Branco & Bladimir Carrillo & José G. Féres, 2018. "Birth Endowments And Parental Investments: New Evidence From Twins," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 196, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    8. Jessica Leight & Elaine M. Liu, 2020. "Maternal Education, Parental Investment, and Noncognitive Characteristics in Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 69(1), pages 213-251.
    9. Emilia Del Bono & Marco Francesconi & Yvonne Kelly & Amanda Sacker, 2016. "Early Maternal Time Investment and Early Child Outcomes," Economic Journal, Royal Economic Society, vol. 126(596), pages 96-135, October.
    10. Wei Fan & Catherine Porter, 2020. "Reinforcement or compensation? Parental responses to children’s revealed human capital levels," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 233-270, January.
    11. Sanz-de-Galdeano, Anna & Terskaya, Anastasia, 2019. "Sibling Differences in Educational Polygenic Scores: How Do Parents React?," IZA Discussion Papers 12375, Institute of Labor Economics (IZA).
    12. Jia Wu & Jiada Lin & Xiao Han, 2023. "Compensation for girls in early childhood and its long-run impact: family investment strategies under rainfall shocks," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1225-1268, July.
    13. Gonzalez, Kathryn E., 2020. "Within-family differences in Head Start participation and parent investment," Economics of Education Review, Elsevier, vol. 74(C).
    14. Elizabeth M. Caucutt & Lance Lochner, 2020. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 1065-1147.
    15. Paul Frijters & David Johnston & Manisha Shah & Michael Shields, 2013. "Intrahousehold Resource Allocation: Do Parents Reduce or Reinforce Child Ability Gaps?," Demography, Springer;Population Association of America (PAA), vol. 50(6), pages 2187-2208, December.
    16. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    17. Abufhele, Alejandra & Behrman, Jere & Bravo, David, 2017. "Parental preferences and allocations of investments in children's learning and health within families," Social Science & Medicine, Elsevier, vol. 194(C), pages 76-86.
    18. Douglas Almond & Bhashkar Mazumder, 2013. "Fetal Origins and Parental Responses," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 37-56, May.
    19. Sneha Elango & Jorge Luis García & James J. Heckman & Andrés Hojman, 2015. "Early Childhood Education," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 235-297, National Bureau of Economic Research, Inc.
    20. Douglas Almond & Janet Currie & Valentina Duque, 2018. "Childhood Circumstances and Adult Outcomes: Act II," Journal of Economic Literature, American Economic Association, vol. 56(4), pages 1360-1446, December.

    More about this item

    Keywords

    skills; quality time; family investment; time-use; child development;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp10993. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.