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The Relative Effect of Family Characteristics and Financial Situation on Educational Achievement

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Author Info
Arnaud Chevalier
Gauthier Lanot

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Abstract

Children from poorer backgrounds are generally observed to have lower educational outcomes than other youth. However, the mechanism through which household income affects the child's outcomes remains unclear. Either, poorer families are financially constrained or some characteristics of the family make the children less likely to participate in post-compulsory education. We propose a methodology that separates financial and familial effects. As in previous studies, we find that pupils from poorer families are less likely to invest in education. However, a financial transfer would not lead to a significant increase in schooling investment, which supports the view that the family characteristic effects dominate the financial constraint effects.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Education Economics.

Volume (Year): 10 (2002)
Issue (Month): 2 (August)
Pages: 165-181
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Handle: RePEc:taf:edecon:v:10:y:2002:i:2:p:165-181

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  1. Stephen V. Cameron & James J. Heckman, 1999. "The Dynamics of Educational Attainment for Blacks, Hispanics, and Whites," NBER Working Papers 7249, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 262-333, April. [Downloadable!] (restricted)
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  4. David G. Blanchflower & Richard B. Freeman, 2000. "Youth Employment and Joblessness in Advanced Countries," NBER Books, National Bureau of Economic Research, Inc, number blan00-1.
  5. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December. [Downloadable!] (restricted)
  6. Shea, John, 2000. "Does parents' money matter?," Journal of Public Economics, Elsevier, vol. 77(2), pages 155-184, August. [Downloadable!] (restricted)
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  11. repec:att:wimass:19952 is not listed on IDEAS
  12. Susan M. Dynarski, 1999. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," NBER Working Papers 7422, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages F82-99, February. [Downloadable!] (restricted)
  14. James J. Heckman, 1999. "Policies to Foster Human Capital," NBER Working Papers 7288, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier. [Downloadable!] (restricted)
  16. Hanushek, Eric A, 1992. "The Trade-Off between Child Quantity and Quality," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 84-117, February. [Downloadable!] (restricted)
  17. Susan Dynarski, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," NBER Working Papers 7756, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  19. Acemoglu, Daron & Pischke, J. -S., 2001. "Changes in the wage structure, family income, and children's education," European Economic Review, Elsevier, vol. 45(4-6), pages 890-904, May. [Downloadable!] (restricted)
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  20. Stephen Cameron & Christopher Taber, 2000. "Borrowing Constraints and the Returns to Schooling," NBER Working Papers 7761, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Massimiliano Bratti, 2007. "Parents’ income and children’s school drop-out at 16 in England and Wales: evidence from the 1970 British Cohort Study," Review of Economics of the Household, Springer, vol. 5(1), pages 15-40, March. [Downloadable!] (restricted)
  2. Sandra Hanslin & Rainer Winkelmann, 2006. "The Apple Falls Increasingly Far: Parent-Child Correlation in Schooling and the Growth of Post-Secondary Education in Switzerland," Working Papers 0603, University of Zurich, Socioeconomic Institute. [Downloadable!]
    Other versions:
  3. Berardino Cesi, 2006. "Public investment and higher education inequality," Discussion Papers in Economics 06/3, Department of Economics, University of Leicester. [Downloadable!]
    Other versions:
  4. Bratti, Massimiliano & Naylor, Robin & Smith, Jeremy, 2007. "Different returns to different degrees? Evidence from the British Cohort Study 1970," The Warwick Economics Research Paper Series (TWERPS) 783, University of Warwick, Department of Economics. [Downloadable!]
  5. Massimiliano Bratti & Robin Naylor & Jeremy Smith, 2005. "Variations in the Wage Returns to a First Degree: Evidence from the British Cohort Study 1970," IZA Discussion Papers 1631, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Mary Arends-Kuenning & Suzanne Duryea, 2006. "The Effect of Parental Presence, Parents’ Education, and Household Headship on Adolescents’ Schooling and Work in Latin America," Journal of Family and Economic Issues, Springer, vol. 27(2), pages 263-286, June. [Downloadable!] (restricted)
  7. Gonzalo Olcina Vauteren & Luisa Escriche, 2006. "Education And Family Income: Can Poor Children Signal Their Talent?," Working Papers. Serie AD 2006-20, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
  8. Massimiliano Bratti, 2006. "Social Class and Undergraduate Degree Subject in the UK," IZA Discussion Papers 1979, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. Alfonso Miranda & Massimiliano Bratti, 2006. "Non-Pecuniary Returns to Higher Education:," IZA Discussion Papers 2090, Institute for the Study of Labor (IZA). [Downloadable!]
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