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Do Parents Invest Less in Worse-Performing Children? Evidence from the Asian Financial Crisis

Bibliographic Data

ID8416112
AuthorsMagda Tsaneva (0000-0003-4416-3357, Clark University, corresponding author)
Year2017
Volume53
Issue1
Pages83-93
Publication date2017-01-02
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueBulletin of Indonesian Economic Studies (JOURNAL)
Journal identifiersISSN: 0007-4918 • E-ISSN: 1472-7234
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00074918.2016.1224320
OpenAlexW2523934113
LanguageEN
References cited20

This article uses data from Indonesia around the time of the 1997–98 Asian financial crisis to examine the role of parental preferences in human capital accumulation. Using a household fixed-effects estimation, I test whether parental education spending is affected by child mathematics test scores. I find that parents are more sensitive to the human capital of younger children, who are penalised for having lower skills than their older siblings. Differences in investment by child gender or birth order are evident in 2000 but not in 1997. This suggests that parents may have an efficiency investment strategy only when resource-constrained, and that education of younger children may be a luxury good

Birth order · Demographic economics · Economic growth · Economics · Estimation · Financial crisis · Human capital · Investment (military) · Labour economics · Macroeconomics · Order (exchange) · Political science · Population · Sociology · Test (biology) · Demography · Finance · Financial Literacy, Pension, Retirement Analysis · Gender, Labor, and Family Dynamics · Poverty, Education, and Child Welfare · Psychology

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Citation velocityhistorical
Highly citedNo

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