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Does increasing parents' schooling raise the schooling of the next generation? Evidence based on conditional second moments

Author

Listed:
  • Francis Vella

    (Georgetown University)

  • Lídia Farré

    (Universidad de Alicante)

  • Roger Klein

    (Rutgers University)

Abstract

This paper investigates the degree of intergenerational transmission ofeducation for individuals from the National Longitudinal Survey of Youth1979. Rather than identifying the causal effect of parental education viainstrumental variables we exploit the feature of the transmissionmechanism responsible for its endogeneity. More explicitly, we assume theintergenerational transfer of unobserved ability is invariant to the economicenvironment. This, combined with the heteroskedasticity resulting from theinteraction of unobserved ability with socioeconomic factors, identifies thiscausal effect. We conclude the observed intergenerational educationalcorrelation reflects both a causal parental educational effect and a transferof unobserved ability.

Suggested Citation

  • Francis Vella & Lídia Farré & Roger Klein, 2009. "Does increasing parents' schooling raise the schooling of the next generation? Evidence based on conditional second moments," Working Papers. Serie AD 2009-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2009-11
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    References listed on IDEAS

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    Cited by:

    1. Helena Holmlund & Mikael Lindahl & Erik Plug, 2011. "The Causal Effect of Parents' Schooling on Children's Schooling: A Comparison of Estimation Methods," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 615-651, September.
    2. José M. Jiménez Gómez & María del Carmen Marco Gil & Pedro Gadea Blanco, 2010. "Some game-theoretic grounds for meeting people half-way," Working Papers. Serie AD 2010-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Meng, Xin & Zhao, Guochang, 2016. "The Long Shadow of the Chinese Cultural Revolution: The Intergenerational Transmission of Education," IZA Discussion Papers 10460, Institute of Labor Economics (IZA).
    4. Nils Saniter, 2012. "Estimating Heterogeneous Returns to Education in Germany via Conditional Heteroskedasticity," SOEPpapers on Multidisciplinary Panel Data Research 458, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Berg Claudia & Emran Shahe & Shilpi Forhad, 2020. "Microfinance and Moneylenders: Long-run Effects of MFIs on Informal Credit Market in Bangladesh," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(3), pages 1-35, July.
    6. Pieter Serneels & Stefan Dercon, 2021. "Aspirations, Poverty, and Education. Evidence from India," Journal of Development Studies, Taylor & Francis Journals, vol. 57(1), pages 163-183, January.
    7. Nazim Habibov & Elvin Afandi & Alex Cheung, 2017. "What is the effect of university education on chances to be self-employed in transitional countries?: Instrumental variable analysis of cross-sectional sample of 29 nations," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 487-500, June.
    8. Sanghita Ghosh & Amit Kundu, 2021. "Women’s Participation in Higher Education in India: An Analysis Across Major States," Indian Journal of Human Development, , vol. 15(2), pages 275-294, August.
    9. Anna Laura Mancini & Chiara Monfardini & Silvia Pasqua, 2017. "Is a good example the best sermon? Children’s imitation of parental reading," Review of Economics of the Household, Springer, vol. 15(3), pages 965-993, September.
    10. Michelle M. Miller & Frank McIntyre, 2020. "Does Money Matter for Intergenerational Income Transmission?," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 941-970, January.
    11. Cardak, Buly A. & Johnston, David W. & Martin, Vance L., 2013. "Intergenerational earnings mobility: A new decomposition of investment and endowment effects," Labour Economics, Elsevier, vol. 24(C), pages 39-47.
    12. James O’Brien, 2020. "Public Works and Children’s School Attendance: Evidence from Rural India," Review of Development and Change, , vol. 25(2), pages 193-214, December.
    13. Gary S. Becker & William H. J. Hubbard & Kevin M. Murphy, 2010. "Explaining the Worldwide Boom in Higher Education of Women," Journal of Human Capital, University of Chicago Press, vol. 4(3), pages 203-241.
    14. Gary S. Becker & William H. J. Hubbard & Kevin M. Murphy, 2010. "Explaining the Worldwide Boom in Higher Education of Women," Journal of Human Capital, University of Chicago Press, vol. 4(3), pages 203-241.
    15. Postepska, Agnieszka, 2021. "Beyond the Origin Dummy: Heterogeneity of Ethnicity and Human Capital Accumulation," IZA Discussion Papers 14019, Institute of Labor Economics (IZA).
    16. Saniter, Nils, 2012. "Estimating Heterogeneous Returns to Education in Germany via Conditional Second Moments," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62050, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    Intergenerational mobility; endogeneity; conditional correlation;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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