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2022 Klein Lecture Parental Education And Invention: The Finnish Enigma

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  • Philippe Aghion
  • Ufuk Akcigit
  • Ari Hyytinen
  • Otto Toivanen

Abstract

Why is invention strongly positively correlated with parental income not only in the United States but also in Finland, which displays low income inequality and high social mobility? Using data on 1.45 M Finnish individuals and their parents, we find the following: (i) the positive association between parental income and off‐spring probability of inventing is greatly reduced when controlling for parental education; (ii) instrumenting for the parents having an MSc degree using distance to nearest university reveals a large causal effect of parental education on offspring probability of inventing; and (iii) the causal effect of parental education has been markedly weakened by the introduction in the early 1970s of a comprehensive schooling reform.

Suggested Citation

  • Philippe Aghion & Ufuk Akcigit & Ari Hyytinen & Otto Toivanen, 2023. "2022 Klein Lecture Parental Education And Invention: The Finnish Enigma," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(2), pages 453-490, May.
  • Handle: RePEc:wly:iecrev:v:64:y:2023:i:2:p:453-490
    DOI: 10.1111/iere.12632
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    References listed on IDEAS

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    Cited by:

    1. Sarah McNamara & Guido Neidhoefer & Patrick Lehnert, 2024. "Intergenerational Mobility of Education in Europe: Geographical Patterns, Cohort-Linked Measures, and the Innovation Nexus," Economics of Education Working Paper Series 0211, University of Zurich, Department of Business Administration (IBW).
    2. Jarkko Harju & Toni Juuti & Tuomas Matikka, 2023. "Stairway to Heaven? Selection into Entrepreneurship, Income Mobility and Firm Performance," Working Papers 17, Finnish Centre of Excellence in Tax Systems Research.

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