Schluter, Christian and Wahba, Jackline
Are parents altruistic? Evidence from Mexico
Journal of Population Economics, 23, (3), . (doi:10.1007/s00148-008-0207-6).
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Are parents altruistic or selfish? We contribute to the continuing debate of this question by proposing a simple test which is implemented using experimental data from the Mexican anti-poverty programme PROGRESA. Benefit eligibility is randomised. Our estimation strategy explicitly addresses potentially confounding factors and selection bias problems. We reject selfishness of parents in non-urbanMexico as PROGRESA beneficiaries spend more on child-related goods and do not increase spending on adult-related goods compared to parents in the control group. At the same time, we reject some rival theories.
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