Advanced Search
MyIDEAS: Login to save this paper or follow this series

Estimating the Effects of Family Background on the Return to Schooling

Contents:

Author Info

  • Deschenes, Olivier

Abstract

This paper examines the causal association between family background characteristics--parental education and family size-and returns to schooling using data from the Occupational Change in a Generation Survey. I first develop a formal model of schooling and earnings, with heterogeneous returns to education. Family environment is shown to influence the marginal return to schooling through its effects on the marginal benefit and the marginal cost of an additional year of education. Using two types of exclusion restrictions, I find that men raised in larger families have substantially lower returns to education, while the combined effects of parental education on the returns to education are more modest. I also examine the difference between OLS and TSLS estimates of the return to schooling. Like other “supply-side†IV studies of the causal effect of education, this paper documents TSLS estimates that are larger than the corresponding OLS estimates. The results of this paper provide an alternative explanation for this phenomenon: constant marginal returns to schooling, combined with a negative ability bias and a positive self-selection bias (i.e. non-hierarchical sorting).

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: http://www.escholarship.org/uc/item/2qm3867s.pdf;origin=repeccitec
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number qt2qm3867s.

as in new window
Length:
Date of creation: 01 Mar 2002
Date of revision:
Handle: RePEc:cdl:ucsbec:qt2qm3867s

Contact details of provider:
Postal: 2127 North Hall, Santa Barbara, CA 93106-9210
Phone: (805) 893-3670
Fax: (805) 893-8830
Web page: http://www.escholarship.org/repec/ucsbecon_dwp/
More information through EDIRC

Related research

Keywords: Estimating; Effects; Family Background; Return; Schooling;

Other versions of this item:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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

Cited by:
  1. Black, Sandra E. & Devereux, Paul J. & Salvanes, Kjell G., 2004. "The More the Merrier? The Effect of Family Composition on Children's Education," IZA Discussion Papers 1269, Institute for the Study of Labor (IZA).
  2. Carneiro, Pedro & Lee, Sokbae, 2010. "Trends in Quality-Adjusted Skill Premia in the United States, 1960-2000," IZA Discussion Papers 5295, Institute for the Study of Labor (IZA).
  3. Krenz, Astrid, 2010. "La distinction reloaded: Returns to education, family background, cultural and social capital in Germany," Center for European, Governance and Economic Development Research Discussion Papers, University of Goettingen, Department of Economics 108, University of Goettingen, Department of Economics.
  4. Kasey S. Buckles & Elizabeth L. Munnich, 2012. "Birth Spacing and Sibling Outcomes," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 47(3), pages 613-642.
  5. Song, Moohoun & Orazem, Peter F. & Wohlgemuth, Darin, 2008. "The role of mathematical and verbal skills on the returns to graduate and professional education," Economics of Education Review, Elsevier, Elsevier, vol. 27(6), pages 664-675, December.
  6. Andrea Mercatanti, 2008. "A likelihood-based analysis for relaxing the exclusion restriction in randomized experiments with imperfect compliance," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 683, Bank of Italy, Economic Research and International Relations Area.
  7. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2010. "Small Family, Smart Family? Family Size and the IQ Scores of Young Men," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 45(1).
  8. Feng Yao & Junsen Zhang, 2013. "Efficient Kernel-Based Semiparametric IV Estimation with an Application to Resolving a Puzzle on the Estimates of the Return to Schooling," Working Papers, Department of Economics, West Virginia University 13-01, Department of Economics, West Virginia University.
  9. Krenz, Astrid, 2010. "La distinction reloaded: Returns to education, family background, cultural and social capital in Germany," Center for European, Governance and Economic Development Research Discussion Papers, University of Goettingen, Department of Economics 108, University of Goettingen, Department of Economics.
  10. Song, Moohoun & Orazem, Peter, 2005. "Returns to Graduate and Professional Education: The Roles of Mathematical and Verbal Skills by Major," Staff General Research Papers, Iowa State University, Department of Economics 12432, Iowa State University, Department of Economics.
  11. Pohlmeier, Winfried & Pfeiffer, Friedhelm & Maier, Michael, 2004. "Returns to Education and Individual Heterogeneity," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 04-34, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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:cdl:ucsbec:qt2qm3867s. 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: (Lisa Schiff).

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.