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Parents’ Current Income, Long-Term Characteristics And Children’S Education : Evidence From The 1970 British Cohort Study

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  • Bratti, Massimiliano

    (Department of Economics, University of Warwick)

Abstract

This paper investigates the effect of parents’ current income and long-term family characteristics on individuals’ highest educational qualification obtained by age 26 using UK data from the 1970 British Cohort Study. The issues of the possible sample selection bias produced by the not completely random omission of current family income and that of its potential endogeneity are addressed, using a hot-deck multiple imputation procedure and including an indicator of child ability, respectively. I find evidence that current family income has a statistically significant positive impact on children’s education, although it is one of negligible magnitude. Long-term family characteristics are far more important.

Suggested Citation

  • Bratti, Massimiliano, 2002. "Parents’ Current Income, Long-Term Characteristics And Children’S Education : Evidence From The 1970 British Cohort Study," The Warwick Economics Research Paper Series (TWERPS) 658, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:658
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    More about this item

    Keywords

    children ; education ; family income ; ordered probit ; hot-deck imputation;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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