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Why the Apple Doesn't Fall Far: Understanding Intergenerational Transmission of Human Capital

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Author Info

  • Black, Sandra E.

    ()
    (University of Texas at Austin)

  • Devereux, Paul J.

    ()
    (University College Dublin)

  • Salvanes, Kjell G.

    ()
    (Norwegian School of Economics)

Abstract

Parents with higher education levels have children with higher education levels. However, is this because parental education actually changes the outcomes of children, suggesting an important spillover of education policies, or is it merely that more able individuals who have higher education also have more able children? This paper proposes to answer this question by using a unique dataset from Norway. Using the reform of the education system that was implemented in different municipalities at different times in the 1960s as an instrument for parental education, we find little evidence of a causal relationship between parents’ education and children’s education, despite significant OLS relationships. We find 2SLS estimates that are consistently lower than the OLS estimates with the only statistically significant effect being a positive relationship between mother's education and son's education. These findings suggest that the high correlations between parents’ and children’s education are due primarily to family characteristics and inherited ability and not education spillovers.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 926.

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Length: 50 pages
Date of creation: Nov 2003
Date of revision:
Publication status: published in: American Economic Review, 2005, 95 (1), 437-449
Handle: RePEc:iza:izadps:dp926

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Keywords: educational reform; intergenerational mobility; education;

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References

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  20. Raaum, Oddbjørn & Salvanes, Kjell G. & Sørensen, Erik Ø., 2003. "The Impact of a Primary School Reform on Educational Stratification: A Norwegian Study of Neighbour and School Mate Correlations," IZA Discussion Papers 953, Institute for the Study of Labor (IZA).
  21. Bruce Sacerdote, 2002. "The Nature and Nurture of Economic Outcomes," American Economic Review, American Economic Association, vol. 92(2), pages 344-348, May.
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  25. 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.
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  27. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier.
  28. Janet Currie & Enrico Moretti, 2003. "Mother'S Education And The Intergenerational Transmission Of Human Capital: Evidence From College Openings," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 118(4), pages 1495-1532, November.
  29. Black, Sandra & Devereux, Paul J. & Salvanes, Kjell G, 2003. "Why the Apple Doesn't Fall: Understanding Intergenerational Transmission of Human Capital," CEPR Discussion Papers 4150, C.E.P.R. Discussion Papers.
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  1. Consumer Heterogeneity and Consistent Market Choices
    by Matthew E. Kahn in Environmental and Urban Economics on 2008-02-11 00:04:00
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