Pupils from poorer background are commonly observed to have lower schooling than other pupils. However, the effect of family income on the child’s educational attainment is unclear. The effect could be direct and due to financial constraints preventing parental investment in their children’s schooling, or indirect when being brought up in a poorer background is associated with some unobservable characteristics reducing schooling. We propose a methodology that separates these effects and find that the indirect effect dominates the direct effect. A policy of educational allowance has no significant effect on post-compulsory education decision making. It appears that some family characteristics have long-term effects on the decision to invest in education over and above the possible financial constraint.
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Length: 33 pages Date of creation: Oct 2000 Date of revision: Publication status: Published in Education Economics, August 2002, Vol 10(2), pages 165-181. Handle: RePEc:kee:keeldp:2000/01
Contact details of provider: Postal: Department of Economics, University of Keele, Keele, Staffordshire, ST5 5BG - United Kingdom Phone: +44 (0)1782 584581 Fax: +44 (0)1782 717577 Email: Web page: http://www.keele.ac.uk/depts/ec/cer/ More information through EDIRC
Find related papers by JEL classification: I21 - Health, Education, and Welfare - - Education - - - Analysis of Education I22 - Health, Education, and Welfare - - Education - - - Educational Finance J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
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