Gansu Survey of Children and Families Papers

Document Type

Working Paper

Date of this Version

5-13-2010

Comments

Suggested Citation:

Leight, J. (2010). Ability and Intrahousehold Allocation in Gansu Province, China (Working Paper). Gansu Survey of Children and Families.

Abstract

This paper analyzes the strategies employed by households in rural China to allo- cate educational expenditure to children of di erent endowment, examining whether parents use educational funding to reinforce or compensate for variation in endow- ment. Employing climatic shocks as an instrument for children's endowment yields results indicating that parental expenditure is preferentially directed to children of lower endowment. This result appears robust to the potentially confounding e ects of gender and grade level and holds across a number of measures of expenditure. This analysis is consistent with a hypothesis that parents use the allocation of household resources to compensate for di erences in endowment among their children.

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Date Posted: 23 March 2011