Decision-making by children

Lundberg, Shelly; Romich, Jennifer L.; Tsang, Kwok Ping

doi:10.1007/s11150-008-9045-2

Cited by 88 publications

(100 citation statements)

References 25 publications

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“…In particular, researchers often adopt a noncooperative game theoretic framework when modelling the interaction between parents and their adolescent children (e.g. McElroy, 1985;Weinberg, 2001;Kooreman, 2004;Hao et al, 2008;Lundberg et al, 2007).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Parents’ economic support of young-adult children: do socioeconomic circumstances matter?

Cobb‐Clark

Gørgens

2013

J Popul Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. This paper assesses how the economic support provided by parents to young adults as they complete their education and enter the labor market is related to the family's socioeconomic circumstances. We address this issue using detailed survey data on intergenerational coresidence and financial transfers merged with nearly a decade of administrative data on the family's welfare receipt while the young person was growing up. We find that young people who experience socioeconomic disadvantage are more likely to be residentially and financially independent of their parents than are their peers growing up in more advantaged circumstances. This disparity is larger for financial transfers than for co-residence and increases as young people age. Moreover, there is a clear link between parental support and a young person's engagement in study and work which is generally stronger at age 20 than at age 18 and is often stronger for advantaged than for disadvantaged youths. We find no evidence, however, that a lack of parental support explains the socioeconomic gradient in either studying or employment.JEL Classification: J12, J13, J22, J24

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Section: Theoretical Backgroundmentioning

confidence: 99%

Parents’ economic support of young-adult children: do socioeconomic circumstances matter?

Cobb‐Clark

Gørgens

2013

J Popul Econ

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“…Burton et al 2002;Hao et al 2008;Cosconati 2009;Lundberg et al 2009). Consistent with these theoretical perspectives, new empirical evidence indicates that parenting style is important in the production of cognitive and non-cognitive ability (Dooley & Stewart 2007;Fiorini & Keane 2014) and that "parenting in early childhood contributes to the intergenerational persistence in incomes found in many studies" (Ermisch 2008 p. 69).…”

Section: Introductionmentioning

confidence: 99%

Parenting Style as an Investment in Human Development

2016

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We take a new look at the role of parenting style and poverty in human development by conceptualizing parenting style as an investment that parents make in the development of their children. Unlike previous researchers, we capture the idea that the investments parents make in their children -including in parenting style -are not only costly in terms of the parents' time and money, but they are also demanding in terms of parents' attention. Thus, parents whose attention is diverted by other things will be less able to invest in their children and adolescents (e.g. to help them with school work, to read to them, to provide a good diet, to monitor their activities, etc.). Finally, we also consider the idea that poverty itself limits parent's attention.We see whether our conceptualization of parenting style, poverty, and child development is likely to be correct by looking at the relationship between parents' parenting style and the development and outcomes of their 18 year old children, captured in the Youth in Focus (YIF) Data. These data combine detailed Centrelink records with extensive survey information from both young people and their parents. We find broad support for our conceptualization of parenting style. In our data we can clearly disentangle parenting style from other more commonly researched aspects of parenting, such as the time and money parents invest in their children. Moreover, parenting style is related to poverty. In particular, poorer parents tend to monitor their young-adult children less than richer parents, even amongst parents that are comparable in other parental aspects of their investment in their children. Parenting style is also related to the young adults' personality development, their behavior, and their schooling outcomes even after accounting for other parental investments. This paper's main contribution is to formalize the complex relation between parenting, poverty, and children's development. Formally modelling the tradeoffs that parents make in raising their childrenas we have done here -is fundamental in the formation of social policy designed to generate better outcomes for disadvantaged children. Such policies are increasingly being enacted by governments across the world in the form of parenting interventions. Evaluations of parenting interventions, however, typically focus only on specific parenting behaviors (e.g. reading to children; monitoring; health care; helping with homework; providing routine; etc.) without considering their consequences for other parental investments. Understanding these tradeoffs is an essential first step in evaluating the overall impact of policies aimed at changing parents' behavior towards their children. Moreover, to the extent that poverty constrains parents' available attention, income transfers that move families out of poverty will not only increase parents' financial resources, but also permit parents to pay more attention into raising their children. The additional attention and financial resources are both expected to result in bett...

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“…There are only few examples of economic models which consider both children and parents as decision makers. Among these there are the models suggested by , Lundberg et al (2009) and Dauphin et al (2011). consider an overlapping generation model for the child's skill production.…”

Section: Introductionmentioning

confidence: 99%

“…However, this model does not allow parents and children to be decision makers in the same period, and non-adult children are supposed to have no in ‡uence on their cognitive investments. On the contrary, Dauphin et al (2011) and Lundberg et al (2009) allow for parents and children to be decision makers at the same time. By estimating a collective model, Dauphin et al (2001) provide evidence that children, who are aged 16 and over and living with parents, are active economic agents and in ‡uence the household decision process, at least when looking at decisions on household consumption and labour supply.…”

Section: Introductionmentioning

confidence: 99%

“…By estimating a collective model, Dauphin et al (2001) provide evidence that children, who are aged 16 and over and living with parents, are active economic agents and in ‡uence the household decision process, at least when looking at decisions on household consumption and labour supply. Lundberg et al (2009), estimate a non-cooperative model to study the decision-making by children distinguishing between decisions taken on their own and shared with their parents. They …nd that the probability of taking independent decisions increases sharply between age 10 and 14.…”

Section: Introductionmentioning

confidence: 99%

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Self Investments of Adolescents and Their Cognitive Development

2012

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While a large literature has focused on the impact of parental investments on child cognitive development, very little is known about the role of child's own investments. Information on how children invest their time separately from parents is probably little informative for babies and toddlers, but it becomes more and more important in later stages of life, such as adolescence, when children start to take decisions independently. By using the Child Development Supplement of the PSID (Panel Study of Income Dynamics), we model the production of cognitive ability of adolescents and extend the set of inputs to include the child's own time investments. Looking at investments during adolescence, we …nd that child's investments matter more than mother's investments. On the contrary, looking at investments during childhood, it is the mother's investments that are more important. Our results are obtained accounting for potential unobserved child's and family's endowments and are robust across several speci…cations and samples, e.g. considering and not considering father's investments and non-intact families.JEL Classi…cation: J13, D1

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Decision-making by children

Cited by 88 publications

References 25 publications

Parents’ economic support of young-adult children: do socioeconomic circumstances matter?

Parents’ economic support of young-adult children: do socioeconomic circumstances matter?

Parenting Style as an Investment in Human Development

Self Investments of Adolescents and Their Cognitive Development

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