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What one does not know, in the form of unobserved heterogeneity, can mislead one in empirical estimates. A simple model of intrahousehold allocations illustrates the possible importance of unobserved factors such as abilities in determining human resources and their impacts. The author reviews...
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) including other aspects of individuals' human capital and parental family background, which in some cases changes the estimated … parenting, such as union partner's human capital and union partner's family's social and economic status, which enriches the …
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