Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/82581 
Year of Publication: 
2012
Series/Report no.: 
Working Paper No. 2012:20
Publisher: 
Uppsala University, Department of Economics, Uppsala
Abstract: 
This paper studies the impact of permanent and transitory shocks to income on parental investments in children. We use panel data on family income, and an index of investments in children in time and goods, from the Children of the National Longitudinal Survey of Youth. Consistent with the literature focusing on non-durable expenditure, we find that there is only partial insurance of parental investments against permanent income shocks, and we cannot reject the hypothesis full insurance against temporary shocks. Nevertheless, the magnitude of the estimated responses is small. A permanent shock corresponding to 10% of family income leads, at most, to an increase in investments of 1.3% of a standard deviation.
Subjects: 
insurance
human capital
consumption
JEL: 
D12
D91
I30
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
566.12 kB





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