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The Effect of Family Income During Childhood on Later-Life Attainment: Evidence from Germany

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Author Info

  • Jenkins, Stephen P.

    ()
    (London School of Economics)

  • Schluter, Christian

    ()
    (University of Southampton)

Abstract

We examine the impact of family income during childhood on the type of secondary school that German children attend, a good indicator of their lifetime socioeconomic attainment. By contrast with several US child outcome studies, we find that late-childhood income is a more important determinant of outcomes than early-childhood income, and income effects are not greater for poor households compared to rich households, other things equal. The income effects are small for native-born German children and non-existent for children from guestworker households. Income effects are also small relative to the impact of differences in parental educational qualifications or institutional factors related to the federal state of residence.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 604.

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Length: 32 pages
Date of creation: Oct 2002
Date of revision:
Handle: RePEc:iza:izadps:dp604

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Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
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Web page: http://www.iza.org

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Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
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Related research

Keywords: child poverty; educational achievement; schooling; family background;

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References

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  1. Daron Acemoglu & Jorn-Steffen Pischke, 2001. "Changes in the wage structure, family income, and children's education," LSE Research Online Documents on Economics 2471, London School of Economics and Political Science, LSE Library.
  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. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July.
  4. Arulampalam, W., 1998. "A Note on Estimated Coefficients in Random Effects Probit Models," The Warwick Economics Research Paper Series (TWERPS) 520, University of Warwick, Department of Economics.
  5. David M. Blau, 1999. "The Effect Of Income On Child Development," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 261-276, May.
  6. Ermisch, John & Francesconi, Marco, 2001. "Family Matters: Impacts of Family Background on Educational Attainments," Economica, London School of Economics and Political Science, vol. 68(270), pages 137-56, May.
  7. Dustmann, Christian, 2001. "Parental Background, Primary to Secondary School Transitions, and Wages," IZA Discussion Papers 367, Institute for the Study of Labor (IZA).
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