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Educational policy and intergenerational income mobility: evidence from the Finnish comprehensive school reform

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  • Pekkarinen, Tuomas

    ()
    (IFAU - Institute for Labour Market Policy Evaluation)

  • Pekkala, Sari

    (Charles River Associates International)

  • Uusitalo, Roope

    (Helsinki School of Economics)

Abstract

This paper estimates the effect of a major education reform on the intergenerational income mobility in Finland. The Finnish comprehensive school reform of 1972-1977 replaced the old two-track school system with a uniform nine-year comprehensive school and significantly reduced the degree of heterogeneity in the Finnish primary and secondary education. We estimate the effect of this reform on the intergenerational income elasticity using a representative sample of males born during 1960-1966. The identification strategy relies on a difference-in-differences approach and exploits the fact that the reform was implemented gradually across country during a six-year period. The results indicate that the reform reduced the intergenerational income elasticity by about seven percentage points.

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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2006:13.

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Length: 32 pages
Date of creation: 11 Nov 2006
Date of revision:
Handle: RePEc:hhs:ifauwp:2006_013

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Keywords: Intergenerational mobility; education; comprehensive school reform;

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  2. Heisz, Andrew & Corak, Miles, 1998. "The Intergenerational Earnings and Income Mobility of Canadian Men: Evidence from Longitudinal Income Tax Data," Analytical Studies Branch Research Paper Series 1998113e, Statistics Canada, Analytical Studies Branch.
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  8. Aakvik, Arild & Salvanes, Kjell G. & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," Working Papers in Economics 08/03, University of Bergen, Department of Economics.
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  16. Öster, Anna, 2006. "Parental unemployment and children's school performance," Working Paper Series 2006:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  17. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
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  19. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
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  21. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Gynnar elitklasser eliten?
    by Daniel Waldenström in Ekonomistas on 2009-06-09 04:16:21
  2. Ännu mer om grundskolans effekt på jämlikheten
    by bergh in Berghs Betraktelser on 2009-06-10 11:23:39
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