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Family Background in an Extended Earnings-Generation Model: Further Evidence

  • Charles M. Beach
  • Ross E. Finnie

This paper reports estimates of family background effects on earnings in the context of a more extensive multi-equation model of earnings generation. This allows more complete characterization of direct versus indirect background effects. In addition to education, occupational attainment, and earnings, the model includes equations for initial occupation and for a direct measure of work experience. A novel data set that includes extensive family background variables is used. Important background effects for mother and father separately are found on education (directly) and earnings (indirectly). Strong support is found for several hypotheses concerning inputs to home-produced human capital.

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File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume14/V14N1P39_49.pdf
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Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 14 (1988)
Issue (Month): 1 (Jan-Mar)
Pages: 39-49

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Handle: RePEc:eej:eeconj:v:14:y:1988:i:1:p:39-49
Contact details of provider: Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
Phone: (201) 684-7346
Web page: http://www.ramapo.edu/eea/journal.html
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  1. 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.
  2. Tomes, Nigel, 1981. "A Model of Fertility and Children's Schooling," Economic Inquiry, Western Economic Association International, vol. 19(2), pages 209-34, April.
  3. Griliches, Zvi & Mason, William M, 1972. "Education, Income, and Ability," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages S74-S103, Part II, .
  4. Lazear, Edward P, 1980. "Family Background and Optimal Schooling Decisions," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 42-51, February.
  5. Charles M. Beach & Ross E. Finnie, 1984. "An Earnings-Generation Model for Canadian Men Structural Estimates," Working Papers 552, Queen's University, Department of Economics.
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