Family Income and Tertiary Education Attendance across the EU: An empirical assessment using sibling data
AbstractThere is plenty of evidence across the EU to suggest that young people from poorer backgrounds are less likely to attend tertiary education than their better-off peers. This correlation is often used to justify monetary transfers to families with students. It is not clear, however, that these differences in attendance are caused by income itself rather than by parental ability, motivation, education, and other aspects of the young person's experience which differ between families, but are not a direct result of income. Controlling for observable family characteristics is a useful first step. But further developments are needed as families potentially differ in unobservable ways that are correlated with both income and attendance. In this paper we use families with several children to correct for unobserved time-invariant family fixed effects. Our results suggest the absence of parental income effects in Belgium and Germany, small positive effects in Poland, medium-size positive effect in the UK, and sizeable positive effects in Hungary.
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Bibliographic InfoPaper provided by Centre for Analysis of Social Exclusion, LSE in its series CASE Papers with number /123.
Date of creation: Jun 2007
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Tertiary education attendance; parental income; liquidity constraints;
Find related papers by JEL classification:
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-02 (All new papers)
- NEP-EDU-2008-02-02 (Education)
- NEP-HRM-2008-02-02 (Human Capital & Human Resource Management)
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