The impact of biological preferences on parental investments in children and step-children |
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| Authors: | Naoko Akashi-Ronquest |
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| Institution: | (1) RTI Health Solutions, 200 Park Offices Drive, Research Triangle Park, NC, USA;(2) California State University, Fullerton, 800 N. State College Blvd, Fullerton, CA, USA |
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| Abstract: | A remarriage typically involves significant changes in a family’s financial circumstance, and these changes, combined with
the relative bargaining relationship between spouses, likely affect the well-being of the children who are part of the family.
In this paper, I use the separate-spheres model, a theoretical model that explains the determinants of bargaining power in
marriage, to analyze how a remarried couple’s bargaining relationship affects their child investment in stepfamilies. Based
on this theoretical model, I build and estimate an empirical model that investigates the determinants of parental investment.
As evidence of parental preference for biological children over stepchildren, I find that an increased wage rate of a biological
mother significantly improves her child investment when her husband is a stepfather of the child, while there is no such effect
for mothers living with the biological father of the child.
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| Keywords: | Family structure Bargaining Divorce Remarriage |
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