A model of parental investment in children's human capital: SKOPE Research Paper No. 15, Spring 2001

Parents' decision to invest in children's human capital is motivated by returns to education and future transfers, which are both affected by perceived gender earnings differentials. To the extent that human capital is accumulated during a time in which the decision lies largely with parents, this model may contribute to understanding differential expenditure on the education of sons and daughters that cause human capital differences prior to entering the labour market