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The Impact of Parental Income and Education on the Schooling of Children

Author

Listed:
  • Chevalier, Arnaud
  • Harmon, Colm
  • O'Sullivan, Vincent
  • Walker, Ian

Abstract

We investigate the relationship between early school-leaving and parental education and paternal income using UK Labour Force Survey data. OLS estimation reveals modest effects of income, stronger effects of maternal education relative to paternal, and stronger effects on sons. Using IV methods to simultaneously model the endogeneity of parental education and income, we find no effect of maternal education. Under certain assumptions, paternal education remains significant (for daughters only). Similarly there are modest effects of paternal income for sons. Thus policies that alleviate income constraints to alter schooling decisions may not be as effective as policies which increase permanent income.

Suggested Citation

  • Chevalier, Arnaud & Harmon, Colm & O'Sullivan, Vincent & Walker, Ian, 2013. "The Impact of Parental Income and Education on the Schooling of Children," Papers WP468, Economic and Social Research Institute (ESRI).
  • Handle: RePEc:esr:wpaper:wp468
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    References listed on IDEAS

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    1. Janet Currie & Enrico Moretti, 2003. "Mother's Education and the Intergenerational Transmission of Human Capital: Evidence from College Openings," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1495-1532.
    2. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-1286, December.
    3. Eric Maurin & Sandra McNally, 2008. "Vive la Révolution! Long-Term Educational Returns of 1968 to the Angry Students," Journal of Labor Economics, University of Chicago Press, vol. 26, pages 1-33.
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    Citations

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    Cited by:

    1. Emilia Bono & Andrea Weber & Rudolf Winter-Ebmer, 2015. "Fertility and economic instability: the role of unemployment and job displacement," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 463-478, April.
    2. Rasmus Landersø & James J. Heckman, 2017. "The Scandinavian Fantasy: The Sources of Intergenerational Mobility in Denmark and the US," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 178-230, January.
    3. Conti, Valentina & Kopinska, Joanna, 2018. "The role of parental cognitive ageing in the intergenerational mobility of cognitive abilities," Labour Economics, Elsevier, vol. 51(C), pages 38-47.
    4. Dragomirescu-Gaina, Catalin & Elia, Leandro & Weber, Anke, 2015. "A fast-forward look at tertiary education attainment in Europe 2020," Journal of Policy Modeling, Elsevier, vol. 37(5), pages 804-819.
    5. Mathias Huebener, 2017. "Intergenerational Effects of Education on Risky Health Behaviours and Long-Term Health," Discussion Papers of DIW Berlin 1709, DIW Berlin, German Institute for Economic Research.
    6. Evangelia Papapetrou & Pinelopi Tsalaporta, 2017. "Is there a case for intergenerational transmission of female labour force participation and educational attainment? Evidence from Greece during the crisis," Working Papers 223, Bank of Greece.
    7. Meng, Xin & Zhao, Guochang, 2016. "The Long Shadow of the Chinese Cultural Revolution: The Intergenerational Transmission of Education," IZA Discussion Papers 10460, Institute for the Study of Labor (IZA).
    8. Raitano Michele & Francesco Vona, 2015. "From the cradle to the grave : the effect of family background on the career path of italian men," Documents de Travail de l'OFCE 2015-05, Observatoire Francais des Conjonctures Economiques (OFCE).
    9. Golsteyn, Bart H.H. & Hirsch, Stefa, 2018. "Are Estimates of Intergenerational Mobility Biased by Non-Response? Evidence from the Netherlands," IZA Discussion Papers 11561, Institute for the Study of Labor (IZA).
    10. Deepti Goel & Bidisha Barooah, 2018. "Drivers of Student Performance: Evidence from Higher Secondary Public Schools in Delhi," Working Papers id:12881, eSocialSciences.
    11. Goel, Deepti & Barooah, Bidisha, 2018. "Drivers of Student Performance: Evidence from Higher Secondary Public Schools in Delhi," IZA Discussion Papers 11670, Institute for the Study of Labor (IZA).
    12. Winters, John V., 2014. "The Production and Stock of College Graduates for U.S. States," IZA Discussion Papers 8730, Institute for the Study of Labor (IZA).
    13. Goel, Deepti & Barooah, Bidisha, 2018. "Drivers of Student Performance: Evidence from Higher Secondary Public Schools in Delhi," GLO Discussion Paper Series 231, Global Labor Organization (GLO).
    14. repec:bla:econom:v:84:y:2017:i:336:p:748-778 is not listed on IDEAS
    15. Jorge M. Agüero & Maithili Ramachandran, 2016. "The Intergenerational Transmission of Schooling among the Education-Rationed," Working papers 2016-25, University of Connecticut, Department of Economics.
    16. Bart Golsteyn & Stefa Hirsch, 2018. "Are estimates of intergenerational mobility biased by non-response? Evidence from the Netherlands," Working Papers 2018-040, Human Capital and Economic Opportunity Working Group.
    17. Borisov, Gleb V. & Pissarides, Christopher A., 2016. "The Intergenerational Transmission of Human Capital and Earnings in Contemporary Russia," IZA Discussion Papers 10300, Institute for the Study of Labor (IZA).

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    Keywords

    children/data/education/Policy/schooling;

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