Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249054 
Year of Publication: 
2022
Series/Report no.: 
GLO Discussion Paper No. 1027
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
In this paper we study whether the presence of binding liquidity constraints and the existence of fixed costs can explain the underinvestment of parents in their children's human capital. We first incorporate these two potential mechanisms into the theoretical model of Raut & Tran (2005) and then we test their empirical relevance using data from the China Health and Retirement Longitudinal Study (CHARLS). Our results show that especially fixed costs play an important role in explaining human capital underinvestment.
Subjects: 
Two-Sided Altruism
Human Capital
Liquidity Constraints
Fixed Costs
JEL: 
J24
J31
I2
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.