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Empirical nonlinearities and neighbourhood effects in the intergenerational transmission of human capital

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  • Yannis Ioannides

Abstract

This letter reports an empirical analysis of individuals' education as a function of their parents' education and of education in the census tract of their upbringing. The analysis is conducted with data from the Panel Study of Income Dynamics, including confidential geocoded data that links individuals to contextual data from the 1980 and 1990 US Census. The results validate those of Kremer's on the role of neighbourhood effects, but also confirm, using both parametric and nonparametric methods, that parents' education and neighbours' education have nonlinear effects that are broadly consistent with theoretical predictions.

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  • Yannis Ioannides, 2003. "Empirical nonlinearities and neighbourhood effects in the intergenerational transmission of human capital," Applied Economics Letters, Taylor & Francis Journals, vol. 10(9), pages 535-539.
    • Handle: RePEc:taf:apeclt:v:10:y:2003:i:9:p:535-539
    DOI: 10.1080/1350485032000146017
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    1. Michael Kremer, 1997. "How Much does Sorting Increase Inequality?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 115-139.
    2. Durlauf, Steven N, 1996. "A Theory of Persistent Income Inequality," Journal of Economic Growth, Springer, vol. 1(1), pages 75-93, March.
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    Cited by:

    1. Patacchini, Eleonora & Zenou, Yves, 2004. "Intergenerational Education Transmission: Neighborhood Quality and/or Parents' Involvement?," Working Paper Series 631, Research Institute of Industrial Economics.
    2. Yannis M. Ioannides, 2010. "Neighborhood Effects and Housing," Discussion Papers Series, Department of Economics, Tufts University 0747, Department of Economics, Tufts University.
    3. Bervoets, Sebastian & Zenou, Yves, 2017. "Intergenerational correlation and social interactions in education," European Economic Review, Elsevier, vol. 92(C), pages 13-30.
    4. Eleonora Patacchini & Yves Zenou, 2011. "Neighborhood Effects And Parental Involvement In The Intergenerational Transmission Of Education," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 987-1013, December.
    5. Zenou, Yves & Calvó-Armengol, Antoni & Bervoets, Sebastian, 2012. "The Role of Social Networks and Peer Effects in Education Transmission," CEPR Discussion Papers 8932, C.E.P.R. Discussion Papers.
    6. Postepska, Agnieszka, 2017. "Ethnic Capital and Intergenerational Transmission of Educational Attainment," IZA Discussion Papers 10851, Institute of Labor Economics (IZA).
    7. Ahjond S. Garmestani & Craig R. Allen & Colin M. Gallagher & John D. Mittelstaedt, 2007. "Departures from Gibrat's Law, Discontinuities and City Size Distributions," Urban Studies, Urban Studies Journal Limited, vol. 44(10), pages 1997-2007, September.

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