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

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  • Charles M. Beach
  • Ross E. Finnie

Abstract

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.

Suggested Citation

  • Charles M. Beach & Ross E. Finnie, 1988. "Family Background in an Extended Earnings-Generation Model: Further Evidence," Eastern Economic Journal, Eastern Economic Association, vol. 14(1), pages 39-49, Jan-Mar.
  • Handle: RePEc:eej:eeconj:v:14:y:1988:i:1:p:39-49
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume14/V14N1P39_49.pdf
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    References listed on IDEAS

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    1. Griliches, Zvi & Mason, William M, 1972. "Education, Income, and Ability," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 74-103, Part II, .
    2. 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.
    3. 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.
    4. 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 37-64, October.
    5. Tomes, Nigel, 1981. "A Model of Fertility and Children's Schooling," Economic Inquiry, Western Economic Association International, vol. 19(2), pages 209-234, April.
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    Cited by:

    1. Ross Finnie & Ronald Meng, 2005. "Literacy and labour market outcomes: self-assessment versus test score measures," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1935-1951.
    2. Huw Lloyd-Ellis, 2003. "On the Impact of Inequality on Productivity Growth in the Short and Long Term: A Synthesis," Canadian Public Policy, University of Toronto Press, vol. 29(s1), pages 65-86, January.
    3. James McIntosh, 2010. "Educational mobility in Canada: results from the 2001 general social survey," Empirical Economics, Springer, vol. 38(2), pages 457-470, April.

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