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Lorenzo, Rotunno ; Nicolas, Berman ; Nicolas, Berman ; Roberta, Ziparo ; Roberta, Ziparo ; Lorenzo, Rotunno. (2022) Sweet child of mine: Parental income, child health and inequality.
In: AMSE Working Papers. RePEc:aim:wpaimx:2005.
Full description at Econpapers
cites:
Human capital production function. As in Almond et al. (2018), and following Heckman (2007), the quality of children production technology is given by a two-period Constant Elasticity of Substitution (CES) function: hc = A h γ(Ip1 c ) (s−1) s + (1 − γ)(Ip2 c ) (s−1) s i s (s−1) where Ip1 c and Ip2 c are the investments parents make into child c = (c1, c2) in period 1 and 2 of their life. Since we are interested in the long-term effect of early life shocks, the parameter s, the elasticity of substitution between Ip1 c and Ip2 c , is key. We derive results for s = 0, implying that the two investments are complements.
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