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It’s All in the Stars: The Chinese Zodiac and the Effects of Parental Investments on Offspring’s Cognitive and Noncognitive Skill Development

Author

Listed:
  • Chih Ming Tan

    (Department of Economics, University of North Dakota, USA; Rimini Centre for Economic Analysis)

  • Xiao Wang

    (International Institute of Finance, University of Science and Technology of China, China)

  • Xiaobo Zhang

    (National School of Development, Peking University, China; International Food Policy Research Institute, USA)

Abstract

The importance of (early) parental investments in children’s cognitive and noncognitive outcomes is a question of deep policy significance. However, because parental investments are arguably endogenous, empirically estimating their importance poses a challenge. This paper exploits a rich and novel dataset, the China Family Panel Studies, and proposes a culture-specific instrumental variable based on the Chinese zodiac, in order to identify the impact of parental investments. By looking at the outcomes of children born just before and just after the cutoff for a “lucky” (or “nonlucky”) zodiac sign, we find that parents' investments have significant effects on their offspring’s development of both cognitive and noncognitive skills.

Suggested Citation

  • Chih Ming Tan & Xiao Wang & Xiaobo Zhang, 2019. "It’s All in the Stars: The Chinese Zodiac and the Effects of Parental Investments on Offspring’s Cognitive and Noncognitive Skill Development," Working Paper series 19-10, Rimini Centre for Economic Analysis.
    • Handle: RePEc:rim:rimwps:19-10
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    More about this item

    Keywords

    Cognitive Skills; Noncognitive Skills; Parental Investments; Zodiac Signs; China;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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