Gender preference, biased sex ratio, and parental investments in single-child households

Abstract

This article investigates parental investments in single-child households. It shows that son preference triggers more parental investments in children and its effects are stronger on investments in sons. A rise in the sex ratio creates a marriage market squeeze. It, however, has ambiguous effects on investments in children, which depends on how strong these investments are as measures for influencing children’s marriage probability. A rise in the sex ratio may particularly raise investments in daughters and lower investments in sons, or vice versa, or it may induce more or less parental investments in both sons and daughters. If the sex ratio and preference of sons are correlated, then the effect of the preference for sons on investments in children is generally ambiguous. If the sex ratio is influenced by parental health investments, then son preference induces a higher sex ratio. However, the higher sex ratio has ambiguous effects on the subsequent parental investments before a child’s marriage. We also show that parental preference of child services over a child’s marital status may explain parental investments.