Parental Actions and Sibling Inequality

26 Pages Posted: 11 Apr 2000

See all articles by Alejandro Gaviria

Alejandro Gaviria

Universidad de los Andes, Colombia - Department of Economics

Date Written: February 2000

Abstract

This paper sets forth a simple model of resource allocation within the family. The model is based on two main assumptions: there are non-convexities in human capital investments and parents cannot borrow to finance their children's education. The model shows that poor and middle-income parents will often find it optimal to channel human capital investments into a few of their children, thus creating sizable inequalities among siblings. The predictions of the model are consistent with the available evidence for three Latin American countries.

JEL Classification: D10, D13, D62

Suggested Citation

Gaviria, Alejandro, Parental Actions and Sibling Inequality (February 2000). Available at SSRN: https://ssrn.com/abstract=219412 or http://dx.doi.org/10.2139/ssrn.219412

Alejandro Gaviria (Contact Author)

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

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