The gender gap in schooling is puzzling given that the expected returns to an individual for increased schooling — as measured by proportional wage increments — does not differ by gender. This paper explores possible explanations for the disparity using a model of parental investment in children. The model allows for differences in investments due to differences in costs — including the opportunity cost of the child's labor as well as school fees and availability. Moreover, it indicates that disparities in investment could come through differences in returns realized by parents, for example, in the probability of transfers from children to parents or in the degree of sympathy or altruism, even when market returns to the children themselves do not differ. While it is difficult to distinguish these different explanations empirically, the paper reviews available evidence and indicates interventions that governments can make to reduce the gender gap in education.

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