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The Effect of Family Income during Childhood on Later-life Attainment: Evidence from Germany

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  • Stephen P. Jenkins
  • Christian Schluter

Abstract

We examine the impact of family income during childhood on the type of secondary school that German children attend, a good indicator of their lifetime socioeconomic attainment. By contrast with several US child outcome studies, we find that late-childhood income is a more important determinant of outcomes than early-childhood income, and income effects are not greater for poor households compared to rich households, other things equal. The income effects are small for native-born German children and non-existent for children from guestworker households. Income effects are also small relative to the impact of differences in parental educational qualifications or institutional factors related to the federal state of residence.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.38630.de/dp317.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 317.

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Length: 28 p.
Date of creation: 2002
Date of revision:
Handle: RePEc:diw:diwwpp:dp317

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Keywords: child poverty; educational achievement; schooling; family background;

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  1. Daron Acemoglu & Jorn-Steffen Pischke, 2000. "Changes in the Wage Structure, Family Income, and Children's Education," NBER Working Papers 7986, National Bureau of Economic Research, Inc.
  2. David M. Blau, 1999. "The Effect Of Income On Child Development," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 261-276, May.
  3. Arulampalam, W., 1998. "A Note on Estimated Coefficients in Random Effects Probit Models," The Warwick Economics Research Paper Series (TWERPS) 520, University of Warwick, Department of Economics.
  4. Gary S. Becker & Nigel Tomes, . "Human Capital and the Rise and Fall of Families," University of Chicago - Population Research Center 84-10, Chicago - Population Research Center.
  5. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
  6. Dustmann, Christian, 2001. "Parental Background, Primary to Secondary School Transitions, and Wages," IZA Discussion Papers 367, Institute for the Study of Labor (IZA).
  7. Ermisch, John & Francesconi, Marco, 2001. "Family Matters: Impacts of Family Background on Educational Attainments," Economica, London School of Economics and Political Science, vol. 68(270), pages 137-56, May.
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