Parental and Child Time Investments and the Cognitive Development of Adolescents

While a large literature has focused on the impact of parental investments on child cognitive development, very little is known about the role of the child’s own investments alongside that of the parents. By using the Child Development Supplement of the Panel Study of Income Dynamics, we model the cognitive production function for adolescents using an augmented value-added model and adopt an estimation method that takes account of unobserved child characteristics. We find that a child’s own investments made during adolescence matter more than the mother’s. Our empirical results appear to be robust to several sensitivity checks.