@TechReport{iza:izadps:dp4431, author={Brandt, Loren and Siow, Aloysius and Wang, Jackie}, title={Substitution Effects in Parental Investments}, year={2009}, month={Sep}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={4431}, url={https://www.iza.org/publications/dp4431}, abstract={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.}, keywords={marriage market;parental investment;household model;transfers}, }