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

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Author Info
Sandra E. Black
Paul J. Devereux
Kjell G. Salvanes

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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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10066.

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Date of creation: Nov 2003
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Handle: RePEc:nbr:nberwo:10066

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Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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  1. Costas Meghir & Mårten Palme, 2003. "Ability, parental background and educational policy: empirical evidence from a social experiment," IFS Working Papers W03/05, Institute for Fiscal Studies. [Downloadable!]
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    Other versions:
  3. Philip Oreopoulos & Marianne E. Page, 2006. "The Intergenerational Effects of Compulsory Schooling," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 729-760, October.
    Other versions:
  4. Aakvik, Arild & Salvanes, Kjell G. & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," IZA Discussion Papers 815, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. 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, vol. 118(4), pages 1495-1532, November. [Downloadable!] (restricted)
  6. 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. [Downloadable!] (restricted)
  7. Oddbjørn Raaum & Kjell G. Salvanes & Erik O. Sørensen, 2006. "The Neighbourhood is Not What it Used to be," Economic Journal, Royal Economic Society, vol. 116(508), pages 200-222, 01. [Downloadable!] (restricted)
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    Other versions:
  14. Philip Oreopoulos & Marianne E. Page & Ann Huff Stevens, 2003. "Does Human Capital Transfer from Parent to Child? The Intergenerational Effects of Compulsory Schooling," NBER Working Papers 10164, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  18. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-86, December. [Downloadable!] (restricted)
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    Other versions:
  21. Philip Oreopoulos, 2003. "Do Dropouts Drop Out Too Soon? Evidence from Changes in School-Leaving Laws," Working Papers oreo-03-01, University of Toronto, Department of Economics. [Downloadable!]
  22. Kate Antonovics & Arthur Goldberger, 2004. "Do Educated Women Make Bad Mothers? Twin Studies of the Intergenerational Transmission of Human Capital," University of California at San Diego, Economics Working Paper Series 2003-10, Department of Economics, UC San Diego. [Downloadable!]
  23. Costas Meghir & Mårten Palme, 2005. "Educational Reform, Ability, and Family Background," American Economic Review, American Economic Association, vol. 95(1), pages 414-424, March. [Downloadable!]
    Other versions:
  24. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S37-64, October. [Downloadable!] (restricted)
  25. 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). [Downloadable!]
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    Other versions:
  27. 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. [Downloadable!]
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