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Title: Partial Insurance and Investments in Children
Resulting in 1 citation.
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Carneiro, Pedro M. Ginja, Rita |
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Partial Insurance and Investments in Children Working Paper 2012:20, Uppsala Center for Labor Studies (UCLS), Department of Economics, Uppsala University, December 2012. Also: http://swopec.hhs.se/uulswp/abs/uulswp2012_022.htm Cohort(s): Children of the NLSY79, NLSY79 Publisher: Department of Economics, Uppsala University Keyword(s): Family Income; Family Resources; Home Observation for Measurement of Environment (HOME); Human Capital; Income Dynamics/Shocks; Insurance; Parent-Child Interaction; Parental Investments; Welfare Permission to reprint the abstract has not been received from the publisher. 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. |
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Bibliography Citation
Carneiro, Pedro M. and Rita Ginja. "Partial Insurance and Investments in Children." Working Paper 2012:20, Uppsala Center for Labor Studies (UCLS), Department of Economics, Uppsala University, December 2012. |