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Actors in the Child Development Process

Author

Listed:
  • Daniela Del Boca

    (University of Turin and Collegio Carlo Alberto)

  • Christopher Flinn

    (New York University)

  • Ewout Verriest

    (New York University)

  • Matthew Wiswall

    (Arizona State University)

Abstract
We construct and estimate a model of child development in which both the parents and children make investments in the child's skill development. In each period of the development process, partially altruistic parents act as the Stackelberg leader and the child the follower when setting her own study time. We then extend this non-cooperative form of interaction by allowing parents to offer incentives to the child to increase her study time, at some monitoring cost. We show that this incentive scheme, a kind of internal conditional cash transfer, produces efficient outcomes and, in general, increases the child's cognitive ability. In addition to heterogeneity in resources (wage offers and non-labor income), the model allows for heterogeneity in preferences both for parents and children, and in monitoring costs. Like their parents, children are forward-looking, but we allow children and parents to have different preferences and for children to have age-varying discount rates, becoming more “patient†as they age. Using detailed time diary information on the allocation of parent and child time linked to measures of child cognitive ability, we estimate several versions of the model. Using model estimates, we explore the impact of various government income transfer policies on child development. As in Del Boca et al. (2016), we find that the most effective set of policies are (external) conditional cash transfers, in which the household receives an income transfer given that the child's cognitive ability exceeds a prespecified threshold. We find that the possibility of households using internal conditional cash transfers greatly increases the cost effectiveness of external conditional cash transfer policies.

Suggested Citation

  • Daniela Del Boca & Christopher Flinn & Ewout Verriest & Matthew Wiswall, 2019. "Actors in the Child Development Process," Working Papers 2019-005, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2019-005
    Note: FI
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Jorge Luis García & James J. Heckman, 2023. "Parenting Promotes Social Mobility Within and Across Generations," Annual Review of Economics, Annual Reviews, vol. 15(1), pages 349-388, September.
    2. John A. List & Ragan Petrie & Anya Samek, 2023. "How Experiments with Children Inform Economics," Journal of Economic Literature, American Economic Association, vol. 61(2), pages 504-564, June.
    3. Joseph-Simon Görlach, 2023. "Borrowing Constraints and the Dynamics of Return and Repeat Migration," Journal of Labor Economics, University of Chicago Press, vol. 41(1), pages 205-243.
    4. Borra, Cristina & Iacovou, Maria & Sevilla, Almudena, 2023. "Adolescent development and the math gender gap," European Economic Review, Elsevier, vol. 158(C).
    5. Rodrigo Ceni & Gonzalo Salas, 2021. "Transfer program enforcement and children’s time allocation," Review of Economics of the Household, Springer, vol. 19(4), pages 1099-1137, December.
    6. Miriam Gensowski & Rasmus Landersø & Philip Dale & Anders Højen & Laura Justice & Dorthe Bleses, 2024. "Public and Parental Investments and Children’s Skill Formation," Working Papers 2024-011, Human Capital and Economic Opportunity Working Group.
    7. Sam Cosaert & Alexandros Theloudis & Bertrand Verheyden, 2023. "Togetherness in the Household," American Economic Journal: Microeconomics, American Economic Association, vol. 15(1), pages 529-579, February.
    8. Christopher Rauh & Laëtitia Renée, 2023. "How to measure parenting styles?," Review of Economics of the Household, Springer, vol. 21(3), pages 1063-1081, September.
    9. Hugo Reis, 2020. "Girls' Schooling Choices And Home Production: Evidence From Pakistan," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(2), pages 783-819, May.
    10. Sam Cosaert & Alexandros Theloudis & Bertrand Verheyden, 2023. "Togetherness in the Household," American Economic Journal: Microeconomics, American Economic Association, vol. 15(1), pages 529-579, February.
    11. Gensowski, Miriam & Landersø, Rasmus & Dale, Philip & Hojen, Anders & Justice, Laura & Bleses, Dorthe, 2024. "Public and Parental Investments, and Children's Skill Formation," IZA Discussion Papers 16956, Institute of Labor Economics (IZA).
    12. Miriam Gensowski & Rasmus Landersø & Philip Dale & Anders Højen & Laura Justice & Dorthe Bleses, 2024. "Public and Parental Investments and Children’s Skill Formation," Working Papers 2024-011, Human Capital and Economic Opportunity Working Group.
    13. Rauh, C. & Renée, L., 2021. "Parenting Types," Cambridge Working Papers in Economics 2110, Faculty of Economics, University of Cambridge.
    14. Flavia Coda Moscarola & Daniela Del Boca & Giovanna Paladino, 2024. "Intergenerational Transmission of Preferences and Parental Behaviours," CESifo Working Paper Series 10902, CESifo.
    15. Jürges, Hendrik & Khanam, Rasheda, 2021. "Adolescents’ time allocation and skill production," Economics of Education Review, Elsevier, vol. 85(C).

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    More about this item

    Keywords

    Time Allocation; Child Development; household labor supply;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D10 - Microeconomics - - Household Behavior - - - General

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