Parental actions and sibling inequality |
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| Institution: | 1. School of Public Policy, The Hebrew University of Jerusalem, Mt. Scopus, Jerusalem 91905, Israel;2. Departamento Nacional de Planeación, Calle 26, No 13-19, piso 14, Bogotá, Colombia;1. The Genetics Institute, Emek Medical Center, Afula, Israel;2. Rappaport Faculty of Medicine, Technion, Haifa, Israel;3. Faculty of Medicine, Hebrew University of Jerusalem, Jerusalem, Israel;4. The Simon Winter Institute for Human Genetics, Bnai Zion Medical Center, Haifa, Israel;5. Bar-Ilan University, Ramat-Gan, Israel;6. Medical Genetics Institute, Shaare Zedek Medical Center, Jerusalem 91031, Israel;1. Switzerland Institute for Dryland Environmental and Energy Research, Ben-Gurion University of the Negev, Israel;2. Porter School of Environmental Studies, Tel Aviv University, Israel;3. Recanati Business School, Tel Aviv University, Israel;1. The Jakobovits Center for Jewish Medical Ethics, Faculty of Medicine, Ben-Gurion University of the Negev, Beer Sheva, Israel;2. Department of Medicine, Faculty of Health Sciences, Ben-Gurion University of the Negev, Beer Sheva, Israel;3. Moshe Prywes Center for Medical Education, Faculty of Health Sciences, Ben-Gurion University of the Negev, Beer Sheva, Israel;4. Soroka University Medical Center, Beer Sheva, Israel;1. Independent researcher, Sevastopol, Crimean Peninsula |
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| 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. |
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