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Why the Apple Doesn't Fall: Understanding Intergenerational Transmission of Human Capital

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Author Info
Black, Sandra
Devereux, Paul J.
Salvanes, Kjell G

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Abstract

Parents with higher education levels have children with higher education levels. Is this because parental education actually changes the outcomes of children, suggesting an important spillover of education policies, or is it merely that more able individuals who have higher education also have more able children? This Paper proposes to answer this question by using a unique dataset from Norway. Using the reform of the education system that was implemented in different municipalities at different times in the 1960s as an instrument for parental education, we find little evidence of a causal relationship between parents’ education and children’s education, despite significant OLS relationships. We find 2SLS estimates that are consistently lower than the OLS estimates with the only statistically significant effect being a positive relationship between mother's education and son's education. These findings suggest that the high correlations between parent’s and children’s education are due primarily to family characteristics and inherited ability and not education spillovers.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4150.

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Date of creation: Dec 2003
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Handle: RePEc:cpr:ceprdp:4150

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Related research
Keywords: education; educational reform; intergenerational mobility;

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Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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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. Raquel Fernandez & Alessandra Fogli & Claudia Olivetti, 2002. "Marrying Your Mom: Preference Transmission and Women's Labor and Education Choices," NBER Working Papers 9234, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Aakvik, Arild & Salvanes, Kjell G. & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," IZA Discussion Papers 815, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Janet Currie & Enrico Moretti, 2003. "Mother'S Education And The Intergenerational Transmission Of Human Capital: Evidence From College Openings," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1495-1532, November. [Downloadable!] (restricted)
  4. Plug, Erik, 2002. "How Do Parents Raise the Educational Attainment of Future Generations?," IZA Discussion Papers 652, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, vol. 87(5), pages 1009-18, December. [Downloadable!] (restricted)
  6. Markus Jäntti & Eva Österbacka & Oddbjörn Raaum & Tor Eriksson & Anders Björklund, 2002. "Brother correlations in earnings in Denmark, Finland, Norway and Sweden compared to the United States," Journal of Population Economics, Springer, vol. 15(4), pages 757-772. [Downloadable!] (restricted)
    Other versions:
  7. Bound, John & Solon, Gary, 1999. "Double trouble: on the value of twins-based estimation of the return to schooling," Economics of Education Review, Elsevier, vol. 18(2), pages 169-182, April. [Downloadable!] (restricted)
    Other versions:
  8. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-86, December. [Downloadable!] (restricted)
  9. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier. [Downloadable!] (restricted)
  10. Raaum, Oddbjørn & Salvanes, Kjell G. & Sørensen, Erik Ø., 2003. "The Impact of a Primary School Reform on Educational Stratification: A Norwegian Study of Neighbour and School Mate Correlations," IZA Discussion Papers 953, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Jere R. Behrman & Mark R. Rosenzweig, 2002. "Does Increasing Women's Schooling Raise the Schooling of the Next Generation?," American Economic Review, American Economic Association, vol. 92(1), pages 323-334, March. [Downloadable!]
  12. Costas Meghir & Mårten Palme, 2003. "Ability, parental background and educational policy: empirical evidence from a social experiment," IFS Working Papers W03/05, Institute for Fiscal Studies. [Downloadable!]
  13. Oddbjørn Raaum & Kjell G. Salvanes & Erik O. Sørensen, 2006. "The Neighbourhood is Not What it Used to be," Economic Journal, Royal Economic Society, vol. 116(508), pages 200-222, 01. [Downloadable!] (restricted)
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  14. Casey B. Mulligan, 1999. "Galton versus the Human Capital Approach to Inheritance," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S184-S224, December. [Downloadable!] (restricted)
  15. Arnaud Chevalier, 2004. "Parental Education and Childs Education: A Natural Experiment," CEE Discussion Papers 0040, Centre for the Economics of Education, LSE. [Downloadable!]
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  16. Bruce Sacerdote, 2002. "The Nature and Nurture of Economic Outcomes," American Economic Review, American Economic Association, vol. 92(2), pages 344-348, May. [Downloadable!]
  17. Daron Acemoglu & Joshua Angrist, 1999. "How Large are the Social Returns to Education? Evidence from Compulsory Schooling Laws," Working papers 99-30, Massachusetts Institute of Technology (MIT), Department of Economics.
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  18. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S37-64, October. [Downloadable!] (restricted)
  19. Dearden, Lorraine & Machin, Stephen & Reed, Howard, 1997. "Intergenerational Mobility in Britain," Economic Journal, Royal Economic Society, vol. 107(440), pages 47-66, January. [Downloadable!] (restricted)
    Other versions:
Full references

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. Chevalier, Arnaud & Harmon, Colm & O’Sullivan, Vincent & Walker, Ian, 2005. "The Impact of Parental Income and Education on the Schooling of Their Children," IZA Discussion Papers 1496, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Sandra Black & Paul Devereux & Kjell Salvanes, 2004. "Why the apple doesn't fall far: understanding intergenerational transmission of human capital," Working Papers in Applied Economic Theory 2004-12, Federal Reserve Bank of San Francisco. [Downloadable!]
    Other versions:
  3. Eric A. Hanushek, 2004. "Some Simple Analytics of School Quality," NBER Working Papers 10229, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Torbjørn Hægeland, Oddbjørn Raaum and Kjell G. Salvanes, 2004. "Pupil achievement, school resources and family backgr," Discussion Papers 397, Research Department of Statistics Norway. [Downloadable!]
  5. de Walque, Damien, 2005. "Parental education and children's schooling outcomes : is the effect nature, nurture, or both? evidence from recomposed families in Rwanda," Policy Research Working Paper Series 3483, The World Bank. [Downloadable!]
  6. Björklund, Anders & Lindahl, Mikael & Plug, Erik, 2004. "Intergenerational Effects in Sweden: What Can We Learn from Adoption Data?," IZA Discussion Papers 1194, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Black, Sandra E. & Devereux, Paul J. & Salvanes, Kjell G., 2004. "Fast Times at Ridgemont High? The Effect of Compulsory Schooling Laws on Teenage Births," IZA Discussion Papers 1416, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Bruce Sacerdote, 2004. "What Happens When We Randomly Assign Children to Families?," NBER Working Papers 10894, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Amelie Constant & Klaus F. Zimmermann, 2004. "Occupational Choice across Generations," Discussion Papers of DIW Berlin 395, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  10. Hægeland, Torbjørn & Raaum, Oddbjørn & Salvanes, Kjell G., 2005. "Pupil Achievement, School Resources and Family Background," IZA Discussion Papers 1459, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Ebonya Washington, 2006. "Female Socialization: How Daughters Affect Their Legislator Fathers' Voting on Women's Issues," NBER Working Papers 11924, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-24.

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