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Using Sibling Samples to Assess the Effect of Childhood Family Income on Completed Schooling

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  • Dan Maurice Levy
  • Greg Duncan
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    Abstract

    We assess the impact of stage-specific family childhood income on completed years of schooling using fixed effects techniques to eliminate biases associated with the omission of unmeasured family characteristics. Sibling data from the Panel Study of Income Dynamics (PSID) indicate that family income during early childhood has a positive effect on children's educational attainment. The magnitude of the effect suggests that a 2.7-fold increase in parental income when the child is 0-4 years old leads to an increase of about half a year of schooling. We find that income during adolescence has a positive but less robust effect.

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    Bibliographic Info

    Paper provided by Northwestern University/University of Chicago Joint Center for Poverty Research in its series JCPR Working Papers with number 168.

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    Date of creation: 27 Apr 2000
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    Handle: RePEc:wop:jopovw:168

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    Web page: http://www.jcpr.org/wp/ByDate.html
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    1. Shelly Lundberg & Robert A. Pollak, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-158, Fall.
    2. Shea, John, 2000. "Does parents' money matter?," Journal of Public Economics, Elsevier, vol. 77(2), pages 155-184, August.
    3. 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.
    4. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc.
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    Cited by:
    1. Black, Sandra & Devereux, Paul J. & Løken, Katrine & Salvanes, Kjell G, 2012. "Care or Cash? The Effect of Child Care Subsidies on Student Performance," CEPR Discussion Papers 8981, C.E.P.R. Discussion Papers.
    2. Loris Vergolini & Nadir Zanini, 2012. "How does aid matter? The effect of financial aid on university enrolment decisions," Working Papers 2012/7, Institut d'Economia de Barcelona (IEB).
    3. W. Jean Yeung & Miriam R. Linver, 2000. "Mediators of Income Effects on Young Children's Development," JCPR Working Papers 176, Northwestern University/University of Chicago Joint Center for Poverty Research.
    4. Michael B Coelli, 2009. "Parental Job Loss, Income Shocks and the Education Enrolment of Youth," Department of Economics - Working Papers Series 1060, The University of Melbourne.
    5. Thomas Vartanian & Linda Houser, 2012. "The Effects of Childhood SNAP Use and Neighborhood Conditions on Adult Body Mass Index," Demography, Springer, vol. 49(3), pages 1127-1154, August.
    6. Coelli, Michael B., 2011. "Parental job loss and the education enrollment of youth," Labour Economics, Elsevier, vol. 18(1), pages 25-35, January.
    7. Loken, Katrine Vellesen & Mogstad, Magne & Wiswall, Matthew, 2010. "What Linear Estimators Miss: Re-Examining the Effects of Family Income on Child Outcomes," IZA Discussion Papers 4971, Institute for the Study of Labor (IZA).

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