EN       DE
  Home   Search  
IZA World of Labor
  Site Map   Contact   Member Login


Substitution Effects in Parental Investments
by Loren Brandt, Aloysius Siow, Jackie Wang
(September 2009)

The paper estimates how parents adjust bride-prices and land divisions to compensate their sons for differences in their schooling investments in rural China. The main estimate implies that when a son receives one yuan less in schooling investment than his brother, he will obtain 0.7 yuan more in observable marital and post-marital transfers as partial compensation. Controlling for unobserved household heterogeneity, planned consumption differences across sons, and a fuller accounting of lifetime transfers are quantitatively important. The empirical findings strongly support the unitary model as a model of resource allocation for sons in traditional agricultural families.
Text: See Discussion Paper No. 4431  


© IZA  Impressum  Last updated: 2015-09-29  webmaster@iza.org    |   Print View    |    Privacy Policy