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Influences of Monetary and Nonmonetary Family Resources on Children’s Development in Verbal Ability in China

Publication Abstract

Download PDF versionLiu, Airan, and Yu Xie. 2013. "Influences of Monetary and Nonmonetary Family Resources on Children’s Development in Verbal Ability in China." PSC Research Report No. 13-800. August 2013.

This paper addresses the debate over the significance of family's monetary versus non-monetary resources in children's achievement and development. We use data from the 2010 baseline survey of the China Family Panel Study to examine the relevance of several proposed determinants in Chinese children's cognitive achievement. Our findings suggest that: (1) family's income is significantly associated with children's achievement, but direct measures of monetary resources are found to have limited effects; (2) non-monetary resources, particularly parenting, are of great importance to children's achievement; (3) parenting practices do not vary greatly by family's economic resources.

Country of focus: China.

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