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Title: Correlation, Consumption, Confusion, or Constraints: Why do Poor Children Perform so Poorly?
Resulting in 1 citation.
1. Caucutt, Elizabeth M.
Lochner, Lance John
Park, Youngmin
Correlation, Consumption, Confusion, or Constraints: Why do Poor Children Perform so Poorly?
NBER Working Paper No. 21023, National Bureau of Economic Research, March 2015.
Also: http://www.nber.org/papers/w21023
Cohort(s): Children of the NLSY79, NLSY79
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Armed Forces Qualifications Test (AFQT); Children, Academic Development; Children, Poverty; Family Background; Family Income; Home Observation for Measurement of Environment (HOME); Human Capital; Intergenerational Patterns/Transmission; Parental Influences; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); Risk Perception

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.
Bibliography Citation
Caucutt, Elizabeth M., Lance John Lochner and Youngmin Park. "Correlation, Consumption, Confusion, or Constraints: Why do Poor Children Perform so Poorly?" NBER Working Paper No. 21023, National Bureau of Economic Research, March 2015.