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The Economics Of Parenting, Self-Esteem, And Academic Performance: Theory And A Test, Rajeev Darolia, Bruce Wydick

Economics

This paper develops a theory about how signals sent to a child by an altruistic parent affect a child's self-esteem, effort and long-term performance when a parent has better information about child ability than children do themselves. We carry out OLS, 2SLS, and 3SLS estimations of our model on a sample of 651 college students. Our results show some complementary actions before college, such as parental praise, foster academic achievement above what natural ability would predict. Conversely, we find some substitutionary actions before college, such as providing them cars as gifts, are associated with lower effort in college and underachievement. …