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Beschreibung:
Child skills are shaped by parental investments. When parents experience a health shock, their investments and therefore their children's skills may be affected. This paper estimates causal effects of severe parental health shocks on child socio-emotional skills. Drawing on a large-scale survey linked to hospital records, we find that socio-emotional skills of 11-16 year-olds are robust to parental health shocks, with the exception of significant but very small reductions in Conscientiousness. We study short-run effects with a child-fixed effects model, and dynamics around the shocks with event studies. A sibling comparison suggests some long-run build-up of effects of early shocks.