Adversity and buffering: multidimensional deprivation, parenting quality, and children's cognitive ability

Based on Sen’s theory of multidimensional deprivation and China Family Panel Survey (CFPS) among 8719 Chinese children (52.61% boys; 12.43 years old), this paper examines the impact of being multidimensionally deprived on children’s cognitive ability by employing two-way fixed effects. We find that measurement of child deprivation should not be confined to the single economic dimension. Cognitive ability of children who are multidimensionally deprived is 0.098 standard deviations lower. This implies that individuals may face a minimum labor market income loss of 5121.28 USD upon reaching adulthood. We perform a series of robustness checks and find that this result holds qualitatively unchanged. Moreover, our research reveals the cumulative negative effect of multidimensional deprivation on cognitive development over time, with early exposure to multidimensional deprivation exacerbating this detrimental effect. Taking a family-oriented perspective, we further explore strategies to enhance cognitive development among children facing multidimensional deprivation. We discover that positive parenting beliefs, more parental investment in human capital, and sound parenting styles significantly mitigate the impact of multidimensional deprivation on children’s cognitive ability. Therefore, early identification of child’s multidimensional deprivation and improving the quality of parenting at home are crucial for fostering cognitive development among the disadvantaged children.