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PRODID:talks.ox.ac.uk
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SUMMARY:Child skill production: Accounting for parental and market-based t
 ime and goods investments - Lance Lochner (The University of Western Ontar
 io)
DTSTART;VALUE=DATE-TIME:20230502T160000
DTEND;VALUE=DATE-TIME:20230502T171500
UID:https://new.talks.ox.ac.uk/talks/id/0bb670a2-433b-47a3-8ce8-c32fc1e171
 73/
DESCRIPTION:Families make several conceptually different types of investme
 nts in their children\, including parental time\, purchased home goods/ser
 vices inputs\, and market-based child care services. This paper develops a
 n intergenerational lifecycle model with multiple child investment inputs\
 , focusing on two key issues both theoretically and empirically.  First\, 
 we study the role of parental human capital in child development through i
 nput prices (i.e.\, wages) and income\, productivity differences\, and pre
 ferences for children's skills.  Second\, we examine the impacts of differ
 ent tax/subsidy policies on the composition of investments\, effective inv
 estment levels\, and child skill accumulation. Both of these issues depend
  heavily on the substitutability across different inputs. We develop an es
 timation strategy that exploits intratemporal optimality conditions based 
 on relative input demand to estimate this substitutability\, as well as th
 e relative productivity of different inputs and the role played by parenta
 l education.  This approach requires no assumptions about the dynamics of 
 skill investment\, preferences\, or credit markets.  It accounts for misme
 asured inputs and wages\, as well as unobserved heterogeneity in parenting
  skills.  We further show how noisy measures of child achievement (measure
 d several years apart) can be incorporated to additionally identify the dy
 namics of skill accumulation.\n\nUsing data from the Child Development Sup
 plement of the PSID\, we estimate the skill production technology for chil
 dren ages 12 and younger.  Our estimates suggest moderate complementarity 
 between parental time and home goods/services inputs as well as between th
 ese family-based inputs and market-based child care\, with elasticities of
  substitution ranging from 0.2 to 0.5.  We find no systematic effects of p
 arental education on the relative productivity of parental time and other 
 home inputs: more educated parents invest more in all investment inputs\, 
 because they have higher incomes and stronger preference for their childre
 n's skills.  Counterfactual simulations show that accounting for the degre
 e of input complementarity implied by our estimates has important implicat
 ions for the input responses to price changes and for the skill growth imp
 acts of large (but not small) price changes.\nSpeakers:\nLance Lochner (Th
 e University of Western Ontario)
LOCATION:Manor Road Building (Room A or https://zoom.us/j/97439169282?pwd=
 N2dVdGVPQmpoMUp2NnRvY2ZLNTJ1dz09)\, Manor Road OX1 3UQ
TZID:Europe/London
URL:https://new.talks.ox.ac.uk/talks/id/0bb670a2-433b-47a3-8ce8-c32fc1e171
 73/
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DESCRIPTION:Talk:Child skill production: Accounting for parental and marke
 t-based time and goods investments - Lance Lochner (The University of West
 ern Ontario)
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