| Popis: |
Two alternative models of parental investments in children's human capital are considered and tested empirically using the Indonesian Family Life Survey (IFLS). The pure loan model and the reciprocity with two-sided altruism model yield different predictions about the effect of children's education level and number of children on intergenerational transfers. Using these predictions, a specification test is carried out to differentiate these two models with the data. The evidence favors the second model of reciprocity with two-sided altruism. |
