Speaker: Emma Pickering Tominey, University of York
Title: The productivity of preschool parental inputs on child ability: inequality by household income and time resources. (joint with Cheti Nicoletti and Kjell Salvanes)
Abstract: We estimate jointly the effect of household labour market and fertility choices in pre-school years on child ability at 11 and 19 for first born children. Exploiting exogenous variation in three inputs of household income, mothers' hours and fertility, we estimate the productivity of inputs and inequalities in the productivity across the distribution of household money (income) and time (hours). Using Norwegian administrative data, the results show that parents' pre-school inputs matter for child skills. Whilst household income raise child skills in the medium- and long-run directly, mothers' labour hours and further fertility are a negative input which lower child skills. At age 19 we see that households can partially remedy the negative effect of hours and fertility by raising either household income or time investments. We calculate that the marginal effect of an increase in mothers' work hours is negative for low income households but becomes positive for high income households. Not only do inequalities in child outcomes stem from difference in resources, but additionally through households using these resources to remedy for negative inputs. This is not true at age 11 however, where household resources do not remedy for the effect of negative inputs.