Income Shocks and Investments in Human Capital

摘要: I find that (1) families only partially insure against income shocks, but expenditures in education of children respond less to shocks than household consumption, as parents try shield them because investments may be complements across children's life-cycle; (2) elasticity terms time is larger with young where there are school-age children, at early ages a substitutability between different uses time; and (3) better off use savings buffer whereas poor resort on public transfers.