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Family Income and Educational Attainment: A Review of Approaches and Evidence for Britain

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Author Info
Jo Blanden
Paul Gregg ()

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Abstract

It is widely recognised that, on average, children from poorer backgrounds have worse educational outcomes than their better off peers. There is less evidence on how this relationship has changed over time and, indeed, what exactly leads to these inequalities. In this paper we demonstrate that the correlation between family background (as measured by family income) and educational attainment has been rising between children born in the late 1950s and those born two decades later. The remainder of the paper is spent considering the extent to which these associations are due to the causal effects of income rather than the result of other dimensions of family background. We review the approaches taken to answering this question, drawing mainly in the US literature, and then present our own evidence from the UK, discussing the plausible range for the true impact of income on education. Our results indicate that income has a causal relationship with educational attainment.

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File URL: http://www.bris.ac.uk/Depts/CMPO/workingpapers/wp101.pdf
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Publisher Info
Paper provided by Department of Economics, University of Bristol, UK in its series The Centre for Market and Public Organisation with number 04/101.

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Length: 34 pages
Date of creation: Apr 2004
Date of revision:
Handle: RePEc:bri:cmpowp:04/101

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Related research
Keywords: Education; Inequality;

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Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty

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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.:
  1. Gibbons, Steve & Machin, Stephen, 2003. "Valuing English primary schools," Journal of Urban Economics, Elsevier, vol. 53(2), pages 197-219, March. [Downloadable!] (restricted)
  2. Jo Blanden & Alissa Goodman & Paul Gregg & Stephen Machin, 2002. "Changes in Intergenerational Mobility in Britain," CEE Discussion Papers 0026, Centre for the Economics of Education, LSE. [Downloadable!]
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  3. Jo Blanden & Stephen Machin, 2004. "Educational Inequality and the Expansion of UK Higher Education," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(2), pages 230-249, 05. [Downloadable!] (restricted)
  4. Jo Blanden & Paul Gregg & Stephen Machin, 2003. "Changes in Educational Inequality," The Centre for Market and Public Organisation 03/079, Department of Economics, University of Bristol, UK. [Downloadable!]
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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. Pierre Lefebvre & Philip Merrigan, 2008. "Family Background, Family Income, Cognitive Tests Scores, Behavioural Scales and their Relationship with Post-secondary Education Participation: Evidence from the NLSCY," Cahiers de recherche 0830, CIRPEE. [Downloadable!]
  2. 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)
  3. Sarah Brown & Steve McIntosh & Karl Taylor, 2007. "FOLLOWING IN YOUR PARENTS’ FOOTSTEPS? Empirical Analysis of Matched Parent-Offspring Test Scores," Working Papers 2007017, The University of Sheffield, Department of Economics, revised Dec 2007. [Downloadable!]
    Other versions:
  4. Akee, Randall K. Q. & Copeland, William & Keeler, Gordon & Angold, Adrian & Costello, Jane E., 2008. "Parents’ Incomes and Children’s Outcomes: A Quasi-Experiment," IZA Discussion Papers 3520, Institute for the Study of Labor (IZA). [Downloadable!]
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