A test of the Becker-Tomes model of human capital transmission using microdata on four generations
AbstractWe estimate the well-known Becker-Tomes (1986) model of intergenerational transmission of human capital. A Swedish data set which links individual measures on educational attainments of four generations, enables us to use great grandparents’ education as an instrumental variable. This approach was suggested already in Becker- Tomes (1986) but, because of the lack of data, never implemented. The identifying assumption, which holds within the Becker-Tomes framework, is that great grandparents’ education is unrelated to great grandchild’s education, conditional on the education of the parent and grandparent. We test the prediction that the structural parameter for grandparents’ education enters with a negative sign in an intergenerational regression model where the education of a child is linearly related to the education of the parent and the education of the grandparent. We fail to find empirical support for the model’s predictions.
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Bibliographic InfoPaper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2013:2.
Length: 17 pages
Date of creation: 16 Jan 2013
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The Becker-Tomes model; Human capital transmission; Multigenerational effects;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-09 (All new papers)
- NEP-CWA-2013-03-09 (Central & Western Asia)
- NEP-EDU-2013-03-09 (Education)
- NEP-HRM-2013-03-09 (Human Capital & Human Resource Management)
- NEP-LMA-2013-03-09 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2013-03-09 (Unemployment, Inequality & Poverty)
- NEP-URE-2013-03-09 (Urban & Real Estate Economics)
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