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Parental Education, Grade Attainment & Earnings Expectations among University Students

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Author Info

  • Liam Delaney

    (UCD Geary Institute, University College Dublin; School of Economics, University College Dublin; School of Public Health and Population Science, University College Dublin)

  • Colm Harmon

    (UCD Geary Institute, University College Dublin; School of Economics, University College Dublin; IZA, Bonn)

  • Cathy Redmond

    (UCD Geary Institute, University College Dublin)

Abstract

While there is an extensive literature on intergenerational transmission of economic outcomes (education, health and income for example), many of the pathways through which these outcomes are transmitted are not as well understood. We address this deficit by analysing the relationship between socio-economic status and child outcomes in university, based on a rich and unique dataset of university students. While large socio-economic differences in academic performance exist at the point of entry into university, these differences are substantially narrowed during the period of study. Importantly, the differences across socio-economic backgrounds in university grade attainment for female students is explained by intermediating variables such as personality, risk attitudes and time preferences, and subject/college choices. However, for male students, we explain less than half of the socio-economic gradient through these same pathways. Despite the weakening socio-economic effect in grade attainment, a key finding is that large socio-economic differentials in the earnings expectations of university students persist, even when controlling for grades in addition to our rich set of controls. Our findings pose a sizable challenge for policy in this area as they suggest that equalising educational outcomes may not translate into equal labour market outcomes.

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File URL: http://www.ucd.ie/geary/static/publications/workingpapers/gearywp201035.pdf
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Bibliographic Info

Paper provided by Geary Institute, University College Dublin in its series Working Papers with number 201035.

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Length: 43 pages
Date of creation: 11 Aug 2010
Date of revision:
Handle: RePEc:ucd:wpaper:201035

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Keywords: Socio-Economic Status; Education; Inequality; Discrimination;

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References

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  1. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," NBER Working Papers 13810, National Bureau of Economic Research, Inc.
  2. Sandra E. Black & Paul J. Devereux, 2010. "Recent Developments in Intergenerational Mobility," Working Papers 201025, Geary Institute, University College Dublin.
  3. Hertz Tom & Jayasundera Tamara & Piraino Patrizio & Selcuk Sibel & Smith Nicole & Verashchagina Alina, 2008. "The Inheritance of Educational Inequality: International Comparisons and Fifty-Year Trends," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-48, January.
  4. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  5. Samuel Bowles & Herbert Gintis, 2002. "The Inheritance of Inequality," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 3-30, Summer.
  6. Isobel Claire Gormley & Thomas Brendan Murphy, 2006. "Analysis of Irish third-level college applications data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 169(2), pages 361-379.
  7. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  8. Dohmen, Thomas & Falk, Armin & Huffman, David B. & Sunde, Uwe, 2006. "The Intergenerational Transmission of Risk and Trust Attitudes," IZA Discussion Papers 2380, Institute for the Study of Labor (IZA).
  9. Jeff Dominitz & Charles F. Manski, 1994. "Eliciting Student Expectations Of The Returns To Schooling," Econometrics 9411002, EconWPA.
  10. Kevin Denny, 2010. "What did abolishing university fees in Ireland do?," Working Papers 201026, Geary Institute, University College Dublin.
  11. Webbink, Dinand & Hartog, Joop, 2004. "Can students predict starting salaries? Yes!," Economics of Education Review, Elsevier, vol. 23(2), pages 103-113, April.
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Cited by:
  1. Filippin, Antonio & Paccagnella, Marco, 2011. "Family Background, Self-Confidence and Economic Outcomes," IZA Discussion Papers 6117, Institute for the Study of Labor (IZA).

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