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

62 Pages Posted: 18 Sep 2017

See all articles by Cheti Nicoletti

Cheti Nicoletti

University of York - Department of Economics and Related Studies

Valentina Tonei

University of Southampton - Division of Economics

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.

Keywords: time-use, family investment, quality time, skills, child development

JEL Classification: J13, D13, C23, C26

Suggested Citation

Nicoletti, Cheti and Tonei, Valentina, The Response of Parental Time Investments to the Child's Skills and Health. IZA Discussion Paper No. 10993, Available at SSRN: https://ssrn.com/abstract=3037898

Cheti Nicoletti (Contact Author)

University of York - Department of Economics and Related Studies ( email )

Heslington
York, YO1 5DD
United Kingdom

Valentina Tonei

University of Southampton - Division of Economics ( email )

Southampton, SO17 1BJ
United Kingdom

HOME PAGE: http://https://sites.google.com/site/valentinatonei/

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