This paper builds upon Cunha's (2015) subjective rationality model in which parents have a subjective belief about the … impact of their investment on the early skill formation of their children. We propose that this subjective belief is …

the production function, they invest more in higher-achieving children. Resources are important, as constrained parents … developing world. I study the role played by parents’ educational investment to explain this inequality and its determinants. To … mitigate the identification problem posed by observational data, I design a lab-in-the-field experiment with poor parents in …