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 …

Do parents alter their investment in their child's human capital in response to changes in school inputs? If they do … children's education. The use of out-of-school suspensions is the novelty of this paper. Out-of-school suspensions are chosen … by the teacher or the principal of the school and not by parents, but they are a consequence of student misbehavior. To …

-income children. Our findings suggest that parental time investments are neutral to early skills gaps, while monetary investments are …

. We show differential impacts by type of transfer: 0-5-year-old children from families receiving the "health" transfer … differences in conditions: while the "education" component imposed conditions only on children of schooling age, the "health …" transfer required regular health checkups of 0-5 year old children. The "health" transfer families were more likely to attend …