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Educational Attainment and Family Background

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  • Arild Aakvik
  • Kjell G. Salvanes
  • Kjell Vaage

Abstract

This paper analyses the effect of aspects of family background, such as family income and parental education, on the educational attainment of persons born from 1967 to 1972. Family income is measured at different periods of a child's life to separate long-term versus short-term effects of family income on educational choices. We find that permanent income matters to a certain degree, and that family income when the child is 0-6 years old is an important explanatory variable for educational attainment later in a child's life. We find that short-term credit constraints have only a small effect on educational attainment. Long-term factors, such as permanent family income and parental education, are much more important for educational attainment than are short-term credit constraints. Public interventions to alleviate the effects of family background should thus also be targeted at a child's early years, the shaping period for the cognitive and non-cognitive skills important later in life. Copyright Verein für Socialpolitik and Blackwell Publishing Ltd. 2005.

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Bibliographic Info

Article provided by Verein für Socialpolitik in its journal German Economic Review.

Volume (Year): 6 (2005)
Issue (Month): 3 (08)
Pages: 377-394

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Handle: RePEc:bla:germec:v:6:y:2005:i:3:p:377-394

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References

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  1. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post--secondary Schooling," Economic Journal, Royal Economic Society, vol. 112(482), pages 705-734, October.
  2. James Heckman & Pedro Carneiro, 2003. "Human Capital Policy," NBER Working Papers 9495, National Bureau of Economic Research, Inc.
  3. Raaum, Oddbjørn & Salvanes, Kjell G. & Sørensen, Erik Ø., 2003. "The Impact of a Primary School Reform on Educational Stratification: A Norwegian Study of Neighbour and School Mate Correlations," IZA Discussion Papers 953, Institute for the Study of Labor (IZA).
  4. Sandra E. Black & Paul G. Devereux & Kjell G. Salvanes, 2004. "The More the Merrier? The Effect of Family Composition on Children's Education," NBER Working Papers 10720, National Bureau of Economic Research, Inc.
  5. Aakvik, Arild & Salvanes, Kjell G & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," CEPR Discussion Papers 4088, C.E.P.R. Discussion Papers.
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Cited by:
  1. Michael Fertig & Marcus Tamm, 2010. "Always Poor or Never Poor and Nothing in Between? Duration of Child Poverty in Germany," German Economic Review, Verein für Socialpolitik, vol. 11, pages 150-168, 05.
  2. Raaum, Oddbjørn & Bratsberg, Bernt & Røed, Knut & Österbacka , Eva & Eriksson, Tor & Jäntti, Markus & Naylor, Robin, 2007. "Marital Sorting, Household Labor Supply, and Intergenerational Earnings Mobility across Countries," Memorandum 17/2007, Oslo University, Department of Economics.
  3. Beraldo, Sergio & Montolio, Daniel & Turati, Gilberto, 2009. "Healthy, educated and wealthy: A primer on the impact of public and private welfare expenditures on economic growth," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(6), pages 946-956, December.
  4. Ritzen, Jo, 2011. "A renaissance for social mobility and its significance for the bridge towards postsecondary education," MERIT Working Papers 057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Monstad, Karin & Propper, Carol & Salvanes, Kjell G., 2011. "Is teenage motherhood contagious? Evidence from a Natural Experiment," Discussion Paper Series in Economics 12/2011, Department of Economics, Norwegian School of Economics.
  6. Maria Knoth Humlum, 2008. "Timing of Family Income, Borrowing Constraints and Child Achievement," Economics Working Papers 2008-12, School of Economics and Management, University of Aarhus.
  7. Lars Lefgren & Matthew J. Lindquist & David Sims, 2012. "Rich Dad, Smart Dad: Decomposing the Intergenerational Transmission of Income," Journal of Political Economy, University of Chicago Press, vol. 120(2), pages 268 - 303.
  8. Martin Ryan & Siobhan McCarthy & Carol Newman, 2007. "Household Characteristics of Higher Education Participants," Working Papers 200702, Geary Institute, University College Dublin.

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