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Family income and tertiary education attendance across the EU: an empirical assessment using sibling data

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  • Vandenberghe, Vincent

Abstract

There is plenty of evidence across the EU to suggest that young people from poorer backgrounds are less likely to attend tertiary education than their better-off peers. This correlation is often used to justify monetary transfers to families with students. It is not clear, however, that these differences in attendance are caused by income itself rather than by parental ability, motivation, education, and other aspects of the young person’s experience which differ between families, but are not a direct result of income. Controlling for observable family characteristics is a useful first step. But further developments are needed as families potentially differ in unobservable ways that are correlated with both income and attendance. In this paper we use families with several children to correct for unobserved time-invariant family fixed effects. Our results suggest the absence of parental income effects in Belgium and Germany, small positive effects in Poland, medium-size positive effect in the UK, and sizeable positive effects in Hungary.

Suggested Citation

  • Vandenberghe, Vincent, 2007. "Family income and tertiary education attendance across the EU: an empirical assessment using sibling data," LSE Research Online Documents on Economics 6214, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:6214
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    File URL: http://eprints.lse.ac.uk/6214/
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    References listed on IDEAS

    as
    1. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post--secondary Schooling," Economic Journal, Royal Economic Society, vol. 112(482), pages 705-734, October.
    2. Lorraine Dearden & Leslie McGranahan & Barbara Sianesi, 2004. "The Role of Credit Constraints in Educational Choices: Evidence from NCDS and BCS70," CEE Discussion Papers 0048, Centre for the Economics of Education, LSE.
    3. V. Vandenberghe & O. Debande, 2007. "Deferred and Income-contingent Tuition Fees: An Empirical Assessment using Belgian, German and UK Data," Education Economics, Taylor & Francis Journals, vol. 15(4), pages 421-440.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    tertiary education attendance; parental income; liquidity constraints;

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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