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Title: Beliefs, Parental Investments, and Intergenerational Persistence: A Formal Model
Resulting in 1 citation.
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Hjorth-Trolle, Anders |
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Beliefs, Parental Investments, and Intergenerational Persistence: A Formal Model Rationality and Society 30,1 (February 2018): 108-154. Also: http://journals.sagepub.com/doi/abs/10.1177/1043463117754076 Cohort(s): Children of the NLSY79, NLSY79 Publisher: Sage Publications Keyword(s): Children, Home Environment; Home Observation for Measurement of Environment (HOME); Intergenerational Patterns/Transmission; Parental Investments; Parenting Skills/Styles; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); Socioeconomic Status (SES) Permission to reprint the abstract has not been received from the publisher. Empirical research documents persistent socioeconomic and race gaps in parental investments in children. This article presents a formal model that describes the process through which parents' beliefs about the returns on investments in children evolve over time in light of new information that they receive regarding the outcomes of past investments. The model, which is based on Bayesian learning, accounts for how parents of low socioeconomic status may come to underinvest in their children because they have false low beliefs about the returns on investments. Moreover, the model describes how beliefs are transmitted across generations, thus creating dynasties of underinvesting parents who reproduce inequalities in children's socioeconomic outcomes. Finally, this article uses National Longitudinal Survey of Youth data to provide illustrative empirical evidence on key aspects of the proposed model. The main contribution of this article is to integrate parents' beliefs about returns on investments into existing models of intergenerational transmissions. |
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Bibliography Citation
Hjorth-Trolle, Anders. "Beliefs, Parental Investments, and Intergenerational Persistence: A Formal Model." Rationality and Society 30,1 (February 2018): 108-154.
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