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Family Income and Tertiary Education Attendance across the EU: An empirical assessment using sibling data

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Vincent Vandenberghe

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Abstract

There 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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Publisher Info
Paper provided by Centre for Analysis of Social Exclusion, LSE in its series CASE Papers with number /123.

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Date of creation: Jun 2007
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Handle: RePEc:cep:sticas:/123

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Related research
Keywords: 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

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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. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post--secondary Schooling," Economic Journal, Royal Economic Society, vol. 112(482), pages 705-734, October. [Downloadable!] (restricted)
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  2. V. Vandenberghe & O. Debande, 2007. "Deferred and Income-contingent Tuition Fees: An Empirical Assessment using Belgian, German and UK Data," Education Economics, Taylor and Francis Journals, vol. 15(4), pages 421-440. [Downloadable!] (restricted)
  3. repec:cep:sticas:054 is not listed on IDEAS
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Cited by:
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  1. Marcel Gérard, 2008. "Financing Bologna, the Internationally Mobile Students in European Higher Education," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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