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The impact of parental income on the intra-household distribution of school attainment: A measurement strategy and evidence

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  • Horowitz, Andrew W.
  • Souza, André Portela

Abstract

The relationship between parental income and the level of educational attainment of children is controversial. Some argue that a direct relationship exists and others that unobserved factors correlated with both income and attainment drive the relationship. This paper explores the relationship between income and the intra-household dispersion of education attainment among children. We employ data from Brazil, which like many developing countries displays greater variation in intra-household education attainment than most high-income countries. Unlike prior analyses, IV estimation is employed to control for endogeneity and other biases. Contrary to prior findings, we report a robust monotonically declining relationship between the intra-household dispersion of education attainment and instrumented income. This relationship is consistent with child specialization in poor households suggested by recent theoretical work and has important policy implications.

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Bibliographic Info

Article provided by Elsevier in its journal The Quarterly Review of Economics and Finance.

Volume (Year): 51 (2011)
Issue (Month): 1 (February)
Pages: 1-18

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Handle: RePEc:eee:quaeco:v:51:y:2011:i:1:p:1-18

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Web page: http://www.elsevier.com/locate/inca/620167

Related research

Keywords: Education attainment Intra-household Inequality Instrumental variable Endogenous regressor;

References

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  1. Stephen V. Cameron & Christopher Taber, 2004. "Estimation of Educational Borrowing Constraints Using Returns to Schooling," Journal of Political Economy, University of Chicago Press, vol. 112(1), pages 132-182, February.
  2. Momi Dahan & Alejandro Gaviria, 1998. "Parental Actions and Siblings’ Inequality," Research Department Publications 4150, Inter-American Development Bank, Research Department.
  3. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
  4. Eric Maurin, 1999. "The Impact of Parental Income on Early Schooling Transitions : A Re-examination Using Data over Three Generations," Working Papers 99-69, Centre de Recherche en Economie et Statistique.
  5. Lee, Jong-Wha & Barro, Robert J, 2001. "Schooling Quality in a Cross-Section of Countries," Economica, London School of Economics and Political Science, vol. 68(272), pages 465-88, November.
  6. John Shea, 1997. "Does Parents' Money Matter?," NBER Working Papers 6026, National Bureau of Economic Research, Inc.
  7. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post-Secondary Schooling," NBER Working Papers 9055, National Bureau of Economic Research, Inc.
  8. Abid A. Burki & Tazeen Fasih, 1998. "Households’ Non-leisure Time Allocation for Children and Determinants of Child Labour in Punjab, Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 899-914.
  9. Laura B. Rawlings, 2005. "Evaluating the Impact of Conditional Cash Transfer Programs," World Bank Research Observer, World Bank Group, vol. 20(1), pages 29-55.
  10. Andrew W. Horowitz & Jungmin Lee & Julie R. Trivitt, 2009. "Household-Level Education Borrowing Constraints: Evidence Using the College Attendance of the Sisters of Vietnam Draft Avoiders," Journal of Human Capital, University of Chicago Press, vol. 3(3), pages 197-223.
  11. Keane, Michael P & Wolpin, Kenneth I, 2001. "The Effect of Parental Transfers and Borrowing Constraints on Educational Attainment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 1051-1103, November.
  12. Bedi, Arjun S. & Marshall, Jeffery H., 2002. "Primary school attendance in Honduras," Journal of Development Economics, Elsevier, vol. 69(1), pages 129-153, October.
  13. FranÁois Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2003. "Conditional Cash Transfers, Schooling, and Child Labor: Micro-Simulating Brazil's Bolsa Escola Program," World Bank Economic Review, World Bank Group, vol. 17(2), pages 229-254, December.
  14. Psacharopoulos, George & Arriagada, Ana Maria, 1989. "The Determinants of Early Age Human Capital Formation: Evidence from Brazil," Economic Development and Cultural Change, University of Chicago Press, vol. 37(4), pages 683-708, July.
  15. Gomes-Neto, Joao Batista & Hanushek, Eric A, 1994. "Causes and Consequences of Grade Repetition: Evidence from Brazil," Economic Development and Cultural Change, University of Chicago Press, vol. 43(1), pages 117-48, October.
  16. André Portela Souza, 2007. "Child Labor, School Attendance, and Intrahousehold Gender Bias in Brazil," World Bank Economic Review, World Bank Group, vol. 21(2), pages 301-316, March.
  17. Horowitz, Andrew W. & Wang, Jian, 2004. "Favorite son? Specialized child laborers and students in poor LDC households," Journal of Development Economics, Elsevier, vol. 73(2), pages 631-642, April.
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