IDEAS home Printed from https://ideas.repec.org/a/uwp/jhriss/v35y2000i1p143-176.html
   My bibliography  Save this article

Educational Choice, Families, and Young People's Earnings

Author

Listed:
  • John Ermisch
  • Marco Francesconi

Abstract

This paper presents two optimizing models of educational choice, discusses issues of identification, estimates earnings equations in the context of these models, and presents conditions under which we can test one against the other. The estimates indicate that education is endogenous for young people's earnings, creating a downward bias in estimated returns from education that assume exogeneity. Identification and estimation relies on family background information from a special sample from the British Household Panel Study 1991-95, which matches mothers and their young adult children. Our estimates favor a family model over an individual model, and they suggest that parents allocate resources to education to compensate for differences in their children's earnings endowments.

Suggested Citation

  • John Ermisch & Marco Francesconi, 2000. "Educational Choice, Families, and Young People's Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 35(1), pages 143-176.
  • Handle: RePEc:uwp:jhriss:v:35:y:2000:i:1:p:143-176
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/pdfplus/146359
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Salm, Martin & Schunk, Daniel, 2008. "The Role of Childhood Health for the Intergenerational Transmission of Human Capital: Evidence from Administrative Data," IZA Discussion Papers 3646, Institute of Labor Economics (IZA).
    2. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2010. "Small Family, Smart Family? Family Size and the IQ Scores of Young Men," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    3. Bratti, Massimiliano & Mendola, Mariapia, 2014. "Parental health and child schooling," Journal of Health Economics, Elsevier, vol. 35(C), pages 94-108.
    4. Cheti Nicoletti & Birgitta Rabe, 2019. "Sibling spillover effects in school achievement," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 34(4), pages 482-501, June.
    5. Pronzato, Chiara, 2008. "Why educated mothers don't make educated children? A statistical study in the intergenerational transmission of schooling," ISER Working Paper Series 2008-11, Institute for Social and Economic Research.
    6. Erik Plug & Wim Vijverberg, 2003. "Schooling, Family Background, and Adoption: Is It Nature or Is It Nurture?," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 611-641, June.
    7. Massimiliano BRATTI, 2002. "Parents' Current Income, Long-term Characteristics and Children's Education: Evidence from the 1970 British Cohort," Working Papers 174, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    8. Jorge García Hombrados, 2017. "Cognitive Skills and Intra-Household Allocation of Schooling," Working Paper Series 1817, Department of Economics, University of Sussex Business School.
    9. Alison L. Booth & Mark L. Bryan, 2004. "The Union Membership Wage-Premium Puzzle: Is There a Free Rider Problem?," ILR Review, Cornell University, ILR School, vol. 57(3), pages 402-421, April.
    10. Banerjee, Abhijit V., 2004. "Educational policy and the economics of the family," Journal of Development Economics, Elsevier, vol. 74(1), pages 3-32, June.
    11. Ximena V. Del Carpio & Karen Macours, 2010. "Leveling the intra-household playing field: compensation and specialization in child labor allocation," Research in Labor Economics, in: Randall K.Q. Akee & Eric V. Edmonds & Konstantinos Tatsiramos (ed.), Child Labor and the Transition between School and Work, volume 31, pages 259-295, Emerald Publishing Ltd.
    12. Chevalier, Arnaud & Conlon, Gavan, 2003. "Does it pay to attend a prestigious university?," LSE Research Online Documents on Economics 19477, London School of Economics and Political Science, LSE Library.
    13. Christine Barnet-Verzat & François-Charles Wolff, 2003. "Choix d'éducation et composition par sexe de la fratrie," Economie & Prévision, La Documentation Française, vol. 157(1), pages 97-118.
    14. Janet Currie & Mark Stabile & Phongsack Manivong & Leslie L. Roos, 2010. "Child Health and Young Adult Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    15. Marco Francesconi & Holly Sutherland & Francesca Zantomio, 2011. "A comparison of earnings measures from longitudinal and cross‐sectional surveys: evidence from the UK," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(2), pages 297-326, April.
    16. Brynin, Malcolm & Francesconi, Marco, 2002. "The material returns to partnership: the effects of educational matching on labour market outcomes and gender equality," ISER Working Paper Series 2002-23, Institute for Social and Economic Research.
    17. Massimiliano Bratti & Mendola, M., 2013. "GINI DP 63: Parental Health and Child Schooling!," GINI Discussion Papers 63, AIAS, Amsterdam Institute for Advanced Labour Studies.
    18. Brandon J. Restrepo, 2016. "Parental investment responses to a low birth weight outcome: who compensates and who reinforces?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 969-989, October.
    19. Janet Currie, 2009. "Healthy, Wealthy, and Wise: Socioeconomic Status, Poor Health in Childhood, and Human Capital Development," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 87-122, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:jhriss:v:35:y:2000:i:1:p:143-176. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://jhr.uwpress.org/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.