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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

  • Farré, Lídia

    ()
    (IAE Barcelona (CSIC))

  • Klein, Roger

    ()
    (Rutgers University)

  • Vella, Francis

    ()
    (Georgetown University)

Abstract

This paper investigates the degree of intergenerational transmission of education for individuals from the National Longitudinal Survey of Youth 1979. Rather than identifying the causal effect of parental education via instrumental variables we exploit the feature of the transmission mechanism responsible for its endogeneity. More explicitly, we assume the intergenerational transfer of unobserved ability is invariant to the economic environment. This, combined with the heteroskedasticity resulting from the interaction of unobserved ability with socioeconomic factors, identifies this causal effect. We conclude the observed intergenerational educational correlation reflects both a causal parental educational effect and a transfer of unobserved ability.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3967.

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Length: 28 pages
Date of creation: Jan 2009
Date of revision:
Publication status: published in: Oxford Bulletin of Economics and Statistics, 2012, 74 (5), 676–690
Handle: RePEc:iza:izadps:dp3967

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Keywords: conditional correlation; endogeneity; intergenerational mobility;

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References

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  1. Chevalier, Arnaud, 2004. "Parental Education and Child's Education: A Natural Experiment," IZA Discussion Papers 1153, Institute for the Study of Labor (IZA).
  2. 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.
  3. 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.
  4. 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.
  5. 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).
  6. 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, vol. 102(5), pages 878-911, October.
  7. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2005. "Why the Apple Doesn't Fall Far: Understanding Intergenerational Transmission of Human Capital," American Economic Review, American Economic Association, vol. 95(1), pages 437-449, March.
  8. Fernández, Raquel, 2007. "Women, Work and Culture," CEPR Discussion Papers 6153, C.E.P.R. Discussion Papers.
  9. Derek Neal, 2005. "Why Has Black-White Skill Convergence Stopped?," NBER Working Papers 11090, National Bureau of Economic Research, Inc.
  10. Bruce Sacerdote, 2004. "What Happens When We Randomly Assign Children to Families?," NBER Working Papers 10894, National Bureau of Economic Research, Inc.
  11. Raquel Fernandez, 2007. "Women, Work, and Culture," NBER Working Papers 12888, National Bureau of Economic Research, Inc.
  12. 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).
  13. 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.
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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. 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. Berg, Claudia & Emran, M. Shahe & Shilpi, Forhad, 2013. "Microfinance and Moneylenders: Long-run Effects of MFIs on Informal Credit Market in Bangladesh," MPRA Paper 49040, University Library of Munich, Germany.

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