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

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Author Info

  • 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.

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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2009-11.

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Length: 32 pages
Date of creation: Mar 2009
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2009-11

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Keywords: Intergenerational mobility; endogeneity; conditional correlation;

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References

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  1. Björklund, Anders & Lindahl, Mikael & Plug, Erik, 2005. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," IZA Discussion Papers 1739, Institute for the Study of Labor (IZA).
  2. Jere R. Behrman & Mark R. Rosenzweig, 2002. "Does Increasing Women's Schooling Raise the Schooling of the Next Generation?," American Economic Review, American Economic Association, vol. 92(1), pages 323-334, March.
  3. Bruce Sacerdote, 2004. "What Happens When We Randomly Assign Children to Families?," NBER Working Papers 10894, National Bureau of Economic Research, Inc.
  4. Farré, Lídia & Vella, Francis, 2007. "The Intergenerational Transmission of Gender Role Attitudes and its Implications for Female Labor Force Participation," IZA Discussion Papers 2802, Institute for the Study of Labor (IZA).
  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. Raquel Fernandez, 2007. "Women, Work, and Culture," NBER Working Papers 12888, National Bureau of Economic Research, Inc.
  7. Kate L. Antonovics & Arthur S. Goldberger, 2005. "Does Increasing Women's Schooling Raise the Schooling of the Next Generation? Comment," American Economic Review, American Economic Association, vol. 95(5), pages 1738-1744, December.
  8. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2003. "Why the Apple Doesn't Fall Far: Understanding Intergenerational Transmission of Human Capital," NBER Working Papers 10066, National Bureau of Economic Research, Inc.
  9. Arnaud Chevalier, 2004. "Parental Education and Child’s Education - A Natural Experiment," Working Papers, School Of Economics, University College Dublin 200414, School Of Economics, University College Dublin.
  10. Derek Neal, 2005. "Why Has Black-White Skill Convergence Stopped?," NBER Working Papers 11090, National Bureau of Economic Research, Inc.
  11. Erik Plug, 2004. "Estimating the Effect of Mother's Schooling on Children's Schooling Using a Sample of Adoptees," American Economic Review, American Economic Association, vol. 94(1), pages 358-368, March.
  12. Fernández, Raquel, 2007. "Women, Work and Culture," CEPR Discussion Papers 6153, C.E.P.R. Discussion Papers.
  13. Kane, Thomas J, 1994. "College Entry by Blacks since 1970: The Role of College Costs, Family Background, and the Returns to Education," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 102(5), pages 878-911, October.
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Cited by:
  1. 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.
  2. Claudia Berg & Shahe Emran & Forhad Shilpi, 2014. "Microfinance and Moneylenders: Long-run Effects of MFIs on Informal Credit Market in Bangladesh," Working Papers 25, Institute of Microfinance (InM).
  3. Gadea-Blanco, Pedro & Giménez-Gómez, José Manuel & Marco-Gil, María del Carmen, 2013. "Some game-theoretic grounds for meeting people half-way," Working Papers 2072/220217, Universitat Rovira i Virgili, Department of Economics.

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