Parent-Child Information Frictions and Human Capital Investment : Evidence from a Field Experiment

  title={Parent-Child Information Frictions and Human Capital Investment : Evidence from a Field Experiment},
  author={Peter Bergman},
This paper studies information frictions between parents and their children and how these affect human capital investments. A random sample of parents was provided detailed, biweekly information about their child’s missed assignments and grades. I find parents have upwardly-biased beliefs about their child’s effort; providing additional information attenuates this bias and improves student achievement. Using data from the experiment, I estimate a persuasion or signaling game between parents and… CONTINUE READING
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