Reducing Inequality, Boosting Mobility and Productivity
Edited by David Neumark, Yong-seong Kim and Sang-Hyop Lee
Chapter 6: Parental information and human capital formation
This study reviews the literature on socio-economic inequality in investments in children. The evidence is consistent with a model in which parents are subjectively rational, but although parents act to maximize a well-defined objective function, they may not have up-to-date information on how to invest in their children. The informational constraints have implications for the types of policies that can be adopted in order to reduce the investment gap in children. Preliminary evidence from small randomized controlled trials is suggestive of promising programs that can substantially improve parental investments and child welfare. The findings provide useful guidance for the design of new policies that can close the human capital gap that opens up long before children reach school.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.