GENDER BIAS, INVESTMENTS IN CHILDREN, AND BEQUESTS

The impacts of pure sex preference and differential earnings opportuni ties by gender on investments in children are modelled with altruism. If bequest constraints do not bind human investments are privately eff icient, with the higher-earning gender receiving more education. Educa tion does not depend on parental wealth. The gender differential in be quests is ambiguous, however, even in this case. When bequest constrai nts bind education may depend on wealth and it is also possible for th e gender with better earnings opportunities to get less education. The model is tested with data from Philippine villages where bequest cons traints are generally nonbinding. The schooling differential slightly favors daughters. Estimated bequest behavior, however, reflects pure s ex preference in terms of our model.