Parenting with Patience: Parental Incentives and Child Development

106 Pages Posted: 14 Sep 2023

See all articles by Daniela Del Boca

Daniela Del Boca

University of Turin

Christopher Flinn

New York University (NYU)

Ewout Verriest

Pennsylvania State University

Matthew Wiswall

University of Wisconsin - Madison

Multiple version iconThere are 2 versions of this paper

Date Written: 2023

Abstract

We construct a dynamic model of child development where forward-looking parents and children jointly take actions to increase the child’s cognitive and non-cognitive skills within a Markov Perfect Equilibrium framework. In addition to time and money investments in their child, parents also choose whether to use explicit incentives to increase the child’s self-investment, which may reduce the child’s future intrinsic motivation to invest by reducing the child’s discount factor. We use the estimated model parameters to show that the use of extrinsic motivation has large costs in terms of the child’s future incentives to invest in themselves.

Keywords: time allocation, child development, parenting styles

JEL Classification: J130, D100

Suggested Citation

Boca, Daniela Del and Flinn, Christopher and Verriest, Ewout and Wiswall, Matthew, Parenting with Patience: Parental Incentives and Child Development (2023). CESifo Working Paper No. 10641, Available at SSRN: https://ssrn.com/abstract=4568760 or http://dx.doi.org/10.2139/ssrn.4568760

Daniela Del Boca (Contact Author)

University of Turin ( email )

Via Po 53
Torino, Turin - Piedmont 10100
Italy

Christopher Flinn

New York University (NYU) ( email )

Bobst Library, E-resource Acquisitions
20 Cooper Square 3rd Floor
New York, NY 10003-711
United States

Ewout Verriest

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Matthew Wiswall

University of Wisconsin - Madison ( email )

716 Langdon Street
Madison, WI 53706-1481
United States

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