Parental actions and sibling inequality

Momi Dahan, Alejandro Gaviria*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

This paper presents a simple model of resource allocation within the family. The model is based on two main assumptions: There are nonconvexities in human capital investments and parents cannot borrow to finance their children's education. The model shows that poor and middle-income parents will often find it optimal to channel human capital investments into a few of their children, thus creating sizable inequalities among siblings. The paper shows that the predictions of the model are consistent with the available evidence for three Latin American countries.

Original languageAmerican English
Pages (from-to)281-297
Number of pages17
JournalJournal of Development Economics
Volume72
Issue number1
DOIs
StatePublished - Oct 2003

Keywords

  • Parental actions
  • Resource allocation
  • Sibling inequality

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