Advanced Search
MyIDEAS: Login

Do Parents Risk Aversion and Wealth Explalin Secondary School Choice?

Contents:

Author Info

  • Marco Leonardi

    ()
    (University of Milan, IZA)

Abstract

Using data in which individual risk aversion is measured from answers to a lottery question, I investigate if (and to what extent) parents’ risk aversion and wealth can explain secondary schooling choices of young Italians. The question is relevant because the type of secondary school is likely to affect accession to college and the future performance in the labor market. I find that risk aversion has no effect on the choice of secondary school while family wealth is significantly positively associated to the choice of “Liceo”. OLS and IV estimates show that parents’ wealth has a significantly larger effect in liquidity constrained families (4% of the sample). This finding points to the necessity of introducing schooling grants at lower levels of schooling.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: ftp://ftp.gde.unibocconi.it/gde_articles/2007/GDE_V66_N2_P177-206.pdf
Download Restriction: no

Bibliographic Info

Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 66 (2007)
Issue (Month): 2 (July)
Pages: 177-206

as in new window
Handle: RePEc:gde:journl:gde_v66_n2_p177-206

Contact details of provider:
Postal: via Sarfatti, 25 - 20136 Milano (Italy)
Phone: 0039-02-58365306
Web page: http://www.gde.unibocconi.it/

Order Information:
Email:
Web: http://www.gde.unibocconi.it

Related research

Keywords: risk aversion; education; human capital;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Christian Belzil & Marco Leonardi, 2007. "Can Risk Aversion Explain Schooling Attainments?: evidence from Italy," Post-Print halshs-00201351, HAL.
  2. Guiso, Luigi & Paiella, Monica, 2004. "The Role of Risk Aversion in Predicting Individual Behaviours," CEPR Discussion Papers 4591, C.E.P.R. Discussion Papers.
  3. Flavio Cunha & James J. Heckman & Salvador Navarro, 2005. "Separating Uncertainty from Heterogeneity in Life Cycle Earnings," NBER Working Papers 11024, National Bureau of Economic Research, Inc.
  4. Ignacio Palacios-Huerta, 2001. "An Empirical Analysis of the Risk Properties of Human Capital Returns," Working Papers 2001-10, Brown University, Department of Economics.
  5. Luca Flabbi, 2001. "La scelta della scuola secondaria in Italia," Rivista di Politica Economica, SIPI Spa, vol. 91(6), pages 85-114, July-Augu.
  6. Brunello, Giorgio, 2000. "Absolute Risk Aversion and the Returns to Education," IZA Discussion Papers 192, Institute for the Study of Labor (IZA).
  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. Guiso, Luigi & Jappelli, Tullio & Pistaferri, Luigi, 2002. "An Empirical Analysis of Earnings and Employment Risk," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(2), pages 241-53, April.
  9. Colm Harmon & Vincent Hogan & Ian Walker, 2001. "Dispersion in the Economic Return to Schooling," Working Papers 200116, School Of Economics, University College Dublin.
  10. Gould, Eric D & Moav, Omer & Weinberg, Bruce A, 2001. " Precautionary Demand for Education, Inequality, and Technological Progress," Journal of Economic Growth, Springer, vol. 6(4), pages 285-315, December.
  11. Federico Cingano & Piero Cipollone, 2007. "University drop-out. The case of Italy," Temi di discussione (Economic working papers) 626, Bank of Italy, Economic Research and International Relations Area.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Christian Belzil & Marco Leonardi, 2007. "Risk Aversion and Schooling Decisions," Post-Print halshs-00174507, HAL.
  2. Heineck, Guido & Wölfel, Oliver, 2010. "Parental Risk Attitudes and Children's Secondary School Track Choice," IZA Discussion Papers 5197, Institute for the Study of Labor (IZA).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:gde:journl:gde_v66_n2_p177-206. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Erika Somma).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.