Abstract: Seniors in developed countries are living now progressively longer and healthier lives. The recent rise of maternal employment and single-parent families increase the potential for grandparents to play an important role in the life of their grandchildren. In this paper, I propose and estimate a model of child's human capital that links parental time investment to the grandparents' involvement. The model builds on the existing human capital production function of Chiappori, Salanié, and Weiss (2017) and extends it in several dimensions. I explicitly introduce grandparents' involvement as an additional input and take heterogeneity in parental time extensively documented in the literature. I estimate the model using data from the National Survey of Families and Households in the United States. I find that grandparents' involvement accounts for 15.4% of the variation in the grandchild academic achievement, while the remaining percentage is due to parental investment and grandchild's ability. Specifically, I find that the observed grandparents' effect seems to be driven by the subgroup of mothers with a low educational level. Given these findings, further research on the estimation of the total effect of family background on children educational success should be expanded to include the extended family.

Abstract: Teenagers are renowned to have biased views about the world, and their subjective expectations affect many of their choices, ranging from career choices to risky sexual behaviour. Typical predictors of teenagers’ subjective biases include gender and the characteristics of their parents, such as parental education level. We study the role of friendship in explaining teenagers’ subjective beliefs regarding their college participation. We present a structural model of social learning in networks and propose a novel estimation approach for the estimation of peer effects with ordered outcomes. We estimate this model using data from middle and high-school teenagers in the United States. A large set of observable variables allows us to measure the impact of beliefs, controlling for (stated) preferences, academic achievement, and many other relevant socio-economic characteristics. We find that the average belief of a student’s peers accounts for 12% of the belief updating process, while the remaining percentage is due to individual characteristics.


  • Inequalities in Cognitive and Non-Cognitive Skills: Evidence from the Gambia, with Oswald Koussihouèdé