- Università del Piemonte Orientale
Wednesday, May 3, 2017
Polo Santa Marta, Via Cantarane 24, Room 1.59
We exploit the exogenous variation generated by a university reform to investigate whether and to what extend non-durable consumption responds to changes in children’s years of schooling.
On average, one more year of education increases household nondurable consumption by 0.15 log points. We interpret this ﬁnding as evidence of non-separability in the utility function between children’s schooling and household consumption preferences. Such ﬁnding can be partly related to conceiving education as a consumption good rather than purely a multiperiod investment. Our results suggest that both deﬁnitions can coexist as long as increasing the children’s human capital accumulation process does not reduce non-durable consumption but complements it. This complementarity is qualitatively robust when we analyse the eﬀect of non-durable consumption on the oﬀspring’s years of schooling exploiting an almost overlapping and independent judicial reform.
- Programme Director
- Publication date
December 12, 2016