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School tracking and intergenerational income mobility: Evidence from the Finnish comprehensive school reform

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Author Info
Pekkarinen, Tuomas
Uusitalo, Roope
Kerr, Sari

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Abstract

This paper estimates the effect of a major education reform on intergenerational income mobility. The Finnish comprehensive school reform of 1972-1977 replaced the old two-track school system with a uniform nine-year comprehensive school and shifted the selection of students to vocational and academic tracks from age 11 to age 16. We estimate the effect of this reform on the intergenerational income elasticity using a representative sample of males born between 1960 and 1966. The identification strategy relies on a differences-in-differences approach and exploits the fact that the reform was implemented gradually across the country during a six-year period. The results indicate that the reform reduced the intergenerational income elasticity by 23% from the pre-reform elasticity of 0.30 to post-reform elasticity of 0.23.

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File URL: http://www.sciencedirect.com/science/article/B6V76-4W6Y5FR-1/2/5c47a2b88d4ade28d8191d1ac429ff03
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Publisher Info
Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 93 (2009)
Issue (Month): 7-8 (August)
Pages: 965-973
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Handle: RePEc:eee:pubeco:v:93:y:2009:i:7-8:p:965-973

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Web page: http://www.elsevier.com/locate/inca/505578

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Keywords: Intergenerational mobility Education policy Comprehensive school;

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  1. Nicole Schneeweis & Martina Zweimüller, 2009. "Early tracking and the misfortune of being young," Economics working papers 2009-11, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
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This page was last updated on 2009-12-3.


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