Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328172 
Authors: 
Year of Publication: 
2024
Citation: 
[Journal:] Review of Economic Analysis (REA) [ISSN:] 1973-3909 [Volume:] 16 [Issue:] 4 [Year:] 2024 [Pages:] 409-422
Publisher: 
International Centre for Economic Analysis (ICEA), Waterloo (Ontario)
Abstract: 
Parental encouragement improves a child's academic performance, which reflects the individual accumulation of human capital and can prevent the child from becoming poor in the future. We provide a model to clarify the mechanism by which parental encouragement influences the child's efforts by considering parental time preference, wages, and background. We find that parents who have a child with low innate ability, high wages, strong time preference, and were given little encouragement from their parents in the past hesitate to encourage their child and tendto give them assistance for survival. We also imply that the influence of parental encouragement to children's academic performance is strong in early grades rather than in late grades. Moreover, we indicate that educational institutes such as schools andlocal governments can reduce parents' time preference and provide information about opportunities that stimulate children's efforts at schools. These actions urge the parents who hesitated to encourage their children to begin to encourage them. Furthermore, these actions increase the effectiveness of parental encouragement and realize the child's efforts at school, which results in improving their wages in the labor market in the future.
Subjects: 
encouragement
assistance
opportunity cost
time preference
poverty
school policy
JEL: 
D61
I20
I28
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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