Munich Personal RePEc Archive

Inter-generational effect of parental time and its policy implications

Zhu, Guozhong and Vuralz, Gulfer (2012): Inter-generational effect of parental time and its policy implications.

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Why do parents with more human capital spend more time teaching and taking care of their children, in spite of the higher opportunity cost? How does this aect inter-generational mobility and wage inequality? Does this have any implications on the policy that provides public schooling through income taxation? We develop and estimate a theoretical model to answer these questions, in the light that parental time investment is a powerful means of transmitting human capital inter-generationally.

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