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

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Author Info
Pekkarinen, Tuomas () (IFAU - Institute for Labour Market Policy Evaluation)
Pekkala, Sari (Charles River Associates International)
Uusitalo, Roope (Helsinki School of Economics)

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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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Publisher Info
Paper provided by IFAU - Institute for Labour Market Policy Evaluation 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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Related research
Keywords: Intergenerational mobility; education; comprehensive school reform;

Other versions of this item:

Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion

This paper has been announced in the following NEP Reports:

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.:
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    Other versions:
  2. Flavio Cunha & James J. Heckman & Lance Lochner & Dimitriy V. Masterov, 2005. "Interpreting the Evidence on Life Cycle Skill Formation," NBER Working Papers 11331, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Anders Forslund & Oskar Nordström Stans, 2006. "Swedish Youth Labour Market Policies Revisited," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 168-185. [Downloadable!] (restricted)
    Other versions:
  4. 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!]
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  5. Daniel Aaronson & Bhashkar Mazumder, 2005. "Intergenerational economic mobility in the U.S., 1940 to 2000," Working Paper Series WP-05-12, Federal Reserve Bank of Chicago. [Downloadable!]
  6. Anders Björklund & Mikael Lindahl & Erik Plug, 2005. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," IZA Discussion Papers 1739, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Jo Blanden & Alissa Goodman & Paul Gregg & Stephen Machin, 2002. "Changes in Intergenerational Mobility in Britain," CEE Discussion Papers 0026, Centre for the Economics of Education, LSE. [Downloadable!]
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  9. Christian Dustmann, 2004. "Parental background, secondary school track choice, and wages," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 209-230, April. [Downloadable!] (restricted)
  10. Bertil Holmlund & Qian Liu & Oskar Nordström Skans, 2006. "Mind the Gap? Estimating the Effects of Postponing Higher Education," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  11. Öster, Anna, 2006. "Parental unemployment and children's school performance," Working Paper Series 2006:5, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
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  14. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer. [Downloadable!] (restricted)
  15. 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)
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  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)
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  20. Diego Restuccia & Carlos Urrutia, 2004. "Intergenerational Persistence of Earnings: The Role of Early and College Education," American Economic Review, American Economic Association, vol. 94(5), pages 1354-1378, December. [Downloadable!]
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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. Böckerman, Petri & Hämäläinen, Ulla & Uusitalo, Roope, 2007. "Labour Market Effects of Polytechnic Education Reform: The Finnish Experience," MPRA Paper 4412, University Library of Munich, Germany. [Downloadable!]
  2. Pekkarinen, Tuomas & Uusitalo, Roope & Kerr, Sari, 2009. "School Tracking and Development of Cognitive Skills," IZA Discussion Papers 4058, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Machin, Stephen & Pelkonen, Panu & Salvanes, Kjell G., 2008. "Education and Mobility," IZA Discussion Papers 3845, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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