skip to main content
US FlagAn official website of the United States government
dot gov icon
Official websites use .gov
A .gov website belongs to an official government organization in the United States.
https lock icon
Secure .gov websites use HTTPS
A lock ( lock ) or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.


Title: The (Lack of) Anticipatory Effects of the Social Safety Net on Human Capital Investment
How does the expectation that a child will receive government benefits in adulthood affect parental investments in the child’s human capital? Most parents whose children receive Supplemental Security Income (SSI) benefits overestimate the likelihood that their child will receive SSI benefits in adulthood. We present randomly selected families with the predicted likelihood that their child will receive SSI benefits in adulthood. Reducing parents’ expectations that children will receive benefits in adulthood does not increase investments in children’s human capital. This zero effect is precisely estimated. Likely explanations include parents working more themselves, nonfinancial goals influencing investment, and families facing investment constraints. (JEL G52, I26, I38, J13, J24, J31)  more » « less
Award ID(s):
1847087
PAR ID:
10627591
Author(s) / Creator(s):
;
Publisher / Repository:
American Economic Association
Date Published:
Journal Name:
American Economic Review
Volume:
113
Issue:
12
ISSN:
0002-8282
Page Range / eLocation ID:
3129 to 3172
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
More Like this
  1. Abstract Using a structural life-cycle model, we quantify the heterogeneous impact of school closures during the corona crisis on children affected at different ages and coming from households with different parental characteristics. In the model, public investment through schooling is combined with parental time and resource investments in the production of child human capital at different stages in the children’s development process. We quantitatively characterise the long-term consequences from a COVID-19-induced loss of schooling, and find average losses in the present discounted value of lifetime earnings of the affected children of $$2.1\%$$, as well as welfare losses equivalent to about $$1.2\%$$ of permanent consumption. Because of self-productivity in the human capital production function, younger children are hurt more by the school closures than older children. The negative impact of the crisis on children’s welfare is especially severe for those with parents with low educational attainment and low assets. 
    more » « less
  2. We conduct two experiments to identify the value parents place on equality of opportunity when investing in children. The experiments exogenously vary short-run returns to educational investments to identify the weight placed on equalizing “opportunity” (child-level investment) relative to maximizing “returns” (total household earnings) or to equalizing “outcomes” (child-level expected earnings). While parents in both experiments place some weight on maximizing returns, they also display a strong preference for equalizing opportunities and are willing to forgo 15–45 percent of their earnings to do so. Parents in higher-income countries also care about equalizing outcomes, while parents in lower-income countries do not. (JEL D63, J12, J13, O15) 
    more » « less
  3. To gain support, children use signals to communicate their needs and wants to parents. Infant signals of need, particularly infant cries, have been extensively studied in diverse populations. However, the full range of potential child signals of need, which extend beyond cries, has rarely been investigated in a single study of children of all ages. To help fill this gap, we collected mother and other primary caregiver reports of three common types of child signaling from 131 families with 263 children on Utila, a small island off the coast of Honduras. In exploratory analyses, we found that child signaling was common in both sexes and across all ages, although it decreased with age and neighborhood quality and increased with the frequency of conflict between children and caretakers. Consistent with signaling theory, children who were sad more frequently were perceived as needier within the household and were more likely to receive investment. Caregivers were less likely to respond positively in situations of family conflict or child transgressions, and more likely for injuries and illness. Our results suggest that evolutionary theories of signaling can help explain patterns of child sadness, crying, and temper tantrums. 
    more » « less
  4. This study examined whether variation in parent–child conversations about scientific processes can be explained by child gender and the science-related resources available to parents, known as scientific capital. Parents of 4- and 5-year-old children (N = 70) from across the United States completed a survey of science capital and were then videotaped with their children at home interacting with two science activities (i.e., balance scale and circuit toy). Videos were transcribed and analyzed for parents’ science process language. Results indicated that parents’ science process language occurred significantly more often during conversations with boys, among families with higher levels of scientific capital, and during the scale activity. Gender differences in science process language were not apparent at higher levels of science capital and during the scale activity. These effects speak to the need for measuring child, family, and contextual characteristics when identifying factors that promote children’s early science engagement and learning. Results are discussed in terms of future interventions that could build scientific capital as a means to counteract stereotypes around gender and science. 
    more » « less
  5. Despite a recent surge in research examining parent–child neural similarity using fMRI, there remains a need for further investigation into how such similarity may play a role in children's emotional adjustment. Moreover, no prior studies explored the potential contextual factors that may moderate the link between parent–child neural similarity and children's developmental outcomes. In this study, 32 parent–youth dyads (parents:Mage= 43.53 years, 72% female; children:Mage= 11.69 years, 41% female) watched an emotion-evoking animated film while being scanned using fMRI. We first quantified how similarly emotion network interacts with other brain regions in responding to the emotion-evoking film between parents and their children. We then examined how such parent–child neural similarity is associated with children's emotional adjustment, with attention to the moderating role of family cohesion. Results revealed that higher parent–child similarity in functional connectivity pattern during movie viewing was associated with better emotional adjustment, including less negative affect, lower anxiety, and greater ego resilience in youth. Moreover, such associations were significant only among families with higher cohesion, but not among families with lower cohesion. The findings advance our understanding of the neural mechanisms underlying how children thrive by being in sync and attuned with their parents, and provide novel empirical evidence that the effects of parent–child concordance at the neural level on children's development are contextually dependent. SIGNIFICANCE STATEMENTWhat neural processes underlie the attunement between children and their parents that helps children thrive? Using a naturalistic movie-watching fMRI paradigm, we find that greater parent–child similarity in how emotion network interacts with other brain regions during movie viewing is associated with youth's better emotional adjustment including less negative affect, lower anxiety, and greater ego resilience. Interestingly, these associations are only significant among families with higher cohesion, but not among those with lower cohesion. Our findings provide novel evidence that parent–child shared neural processes to emotional situations can confer benefits to children, and underscore the importance of considering specific family contexts in which parent–child neural similarity may be beneficial or detrimental to children's development, highlighting a crucial direction for future research. 
    more » « less