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Do borrowing constraints matter for intergenerational educational mobility? Evidence from Japan

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  • Yoko Niimi

Abstract

This paper examines the intergenerational transmission of educational attainment using microdata for Japan. By exploiting unique information on whether children have ever given up schooling for financial reasons and, if they have, which level of schooling they have forgone, it assesses the role of borrowing constraints in determining intergenerational educational mobility in a more direct manner than previous attempts. Despite a steady increase in the level of educational attainment, the regression results indicate the absence of an increase in intergenerational educational mobility in postwar Japan. Moreover, while borrowing constraints used to play a significant role in lowering intergenerational educational mobility, they no longer seem to matter for the youngest cohort examined in this paper. Instead, our analysis shows that the relative importance of adolescent academic ability for children’s educational attainment has increased in recent years, thereby underlining the increasing importance of earlier investments in children’s human capital for their subsequent academic advancement.

Suggested Citation

  • Yoko Niimi, 2018. "Do borrowing constraints matter for intergenerational educational mobility? Evidence from Japan," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(4), pages 628-656, October.
  • Handle: RePEc:taf:rjapxx:v:23:y:2018:i:4:p:628-656
    DOI: 10.1080/13547860.2018.1515005
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    Cited by:

    1. Hanol Lee & Jong‐Wha Lee, 2021. "Patterns and determinants of intergenerational educational mobility: Evidence across countries," Pacific Economic Review, Wiley Blackwell, vol. 26(1), pages 70-90, February.
    2. Bénédicte Apouey & Zoya Nissanov & Jacques Silber, 2023. "Ordinal Variables and the Measurement of Upward and Downward Intergenerational Educational Mobility in European Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(3), pages 776-800, September.
    3. Zhi-xiao Jia, 2022. "Regular employment and intergenerational income mobility in Japan," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(2), pages 187-212, June.

    More about this item

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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