This paper models household investments in young children when parents and older siblings share caregiving responsibilities and when investments by older siblings contribute to young children's human capital accumulation. To test the predictions of the model, the paper estimates the impact of...

"This paper proposes that individuals care about the relative income of proximate reference groups. Making use of self-reported life satisfaction as a proxy for unobservable utility, the relative income of siblings is tested for relevance as a reference point for new sample data from Venezuela....