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CRES-Seminar Anastasia Terskaya

CRES-Seminar Anastasia Terskaya

Testing for Parental Inequality Aversion. Evidence from Mexico

  • Date: February, 6th. At 9:30.
  • Room: 24.013 (Ciutadella Campus, Mercè Rodoreda Building. Universitat Pompeu Fabra, Barcelona).

20.01.2018

Abstract: We analyze how children’s disability affects intra-household investment decisions. By means of a general preference model, we show that variation in family size and health conditions can be used to infer whether parents are averse to inequality in the distribution of quality among their children or if, instead, they care more about effi- ciency. In particular, we exploit the fact that parents of only children cannot possibly exhibit inequality aversion. We apply our identification strategy to Mexican crosssectional data and find evidence that parents are inequality averse. Specifically, our results show that inequality aversion induces an average increase of 0.7-0.8 years of schooling for disabled individuals when non-disabled siblings are present. We also show that the effect differs by the gender of the child. Particularly, parental inequality aversion is relevant for males but not for females. While parental inequality aversion does not close the schooling gap between disabled and non-disabled males, its estimated effect is economically relevant, as it represents about 13-15 percent of the disability gap in education, which amounts to 5.3 years of schooling in Mexico.

 

Bio: Anastasi is a PhD student in Economics at the University of Alicante. Her advisors are Anna Sanz-de-Galdeano (University of Alicante) and Núria Rodríguez-Planas (CUNY). Her main reseach fields are Health, Labor, Development Economics and Applied Microeconomics. Currently she is working on the paper about parental preferences for equality (which I will present) and on paper about gender norms and risky behaviors. More information: here.

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