Correlation, consumption, confusion, or constraints: Why do poor children perform so poorly?

Arbeitspapier

The economic and social mobility of a generation may be largely determined by the time it enters school given early developing and persistent gaps in child achievement by family income and the importance of adolescent skill levels for educational attainment and lifetime earnings. After providing new evidence of important differences in early child investments by family income, we study four leading mechanisms thought to explain these gaps: an intergenerational correlation in ability, a consumption value of investment, information frictions, and credit constraints. In order to better determine which of these mechanisms influence family investments in children, we evaluate the extent to which these mechanisms also explain other important stylized facts related to the marginal returns on investments and the effects of parental income on child investments and skills.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CIBC Working Paper ; No. 2015-3

Classification and Topics

• Classification: Wirtschaft

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Caucutt, Elizabeth M. ; Lochner, Lance ; Park, Youngmin
• Event: Veröffentlichung
• (who): The University of Western Ontario, CIBC Centre for Human Capital and Productivity
• (where): London (Ontario)
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/121967