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Does increasing parents' schooling raise the schooling of the next generation? Evidence based on conditional second moments

Author

Listed:
  • Francis Vella

    (Georgetown University)

  • Lídia Farré

    (Universidad de Alicante)

  • Roger Klein

    (Rutgers University)

Abstract

This paper investigates the degree of intergenerational transmission ofeducation for individuals from the National Longitudinal Survey of Youth1979. Rather than identifying the causal effect of parental education viainstrumental variables we exploit the feature of the transmissionmechanism responsible for its endogeneity. More explicitly, we assume theintergenerational transfer of unobserved ability is invariant to the economicenvironment. This, combined with the heteroskedasticity resulting from theinteraction of unobserved ability with socioeconomic factors, identifies thiscausal effect. We conclude the observed intergenerational educationalcorrelation reflects both a causal parental educational effect and a transferof unobserved ability.

Suggested Citation

  • Francis Vella & Lídia Farré & Roger Klein, 2009. "Does increasing parents' schooling raise the schooling of the next generation? Evidence based on conditional second moments," Working Papers. Serie AD 2009-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasad:2009-11
    as

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    References listed on IDEAS

    as
    1. Bruce Sacerdote, 2004. "What Happens When We Randomly Assign Children to Families?," NBER Working Papers 10894, National Bureau of Economic Research, Inc.
    2. Anders Björklund & Mikael Lindahl & Erik Plug, 2006. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," The Quarterly Journal of Economics, Oxford University Press, vol. 121(3), pages 999-1028.
    3. Kate L. Antonovics & Arthur S. Goldberger, 2005. "Does Increasing Women's Schooling Raise the Schooling of the Next Generation? Comment," American Economic Review, American Economic Association, vol. 95(5), pages 1738-1744, December.
    4. Lídia Farré & Francis Vella, 2013. "The Intergenerational Transmission of Gender Role Attitudes and its Implications for Female Labour Force Participation," Economica, London School of Economics and Political Science, vol. 80(318), pages 219-247, April.
    5. Jere R. Behrman & Mark R. Rosenzweig, 2002. "Does Increasing Women's Schooling Raise the Schooling of the Next Generation?," American Economic Review, American Economic Association, vol. 92(1), pages 323-334, March.
    6. Neal, Derek, 2006. "Why Has Black-White Skill Convergence Stopped?," Handbook of the Economics of Education, Elsevier.
    7. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2005. "Why the Apple Doesn't Fall Far: Understanding Intergenerational Transmission of Human Capital," American Economic Review, American Economic Association, vol. 95(1), pages 437-449, March.
    8. Arnaud Chevalier, 2004. "Parental education and child’s education : a natural experiment," Working Papers 200414, School of Economics, University College Dublin.
    9. Raquel Fernández, 2007. "Alfred Marshall Lecture Women, Work, and Culture," Journal of the European Economic Association, MIT Press, vol. 5(2-3), pages 305-332, 04-05.
    10. Raquel Fernandez, 2007. "Women, Work, and Culture," NBER Working Papers 12888, National Bureau of Economic Research, Inc.
    11. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
    12. Erik Plug, 2004. "Estimating the Effect of Mother's Schooling on Children's Schooling Using a Sample of Adoptees," American Economic Review, American Economic Association, vol. 94(1), pages 358-368, March.
    13. Fernández, Raquel, 2007. "Women, Work and Culture," CEPR Discussion Papers 6153, C.E.P.R. Discussion Papers.
    14. Kane, Thomas J, 1994. "College Entry by Blacks since 1970: The Role of College Costs, Family Background, and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 878-911, October.
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    Citations

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    Cited by:

    1. José M. Jiménez Gómez & María del Carmen Marco Gil & Pedro Gadea Blanco, 2010. "Some game-theoretic grounds for meeting people half-way," Working Papers. Serie AD 2010-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    2. 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).
    3. Berg, Claudia & Emran, M. Shahe & Shilpi, Forhad, 2013. "Microfinance and moneylenders : long-run effects of MFIs on informal credit market in Bangladesh," Policy Research Working Paper Series 6619, The World Bank.
    4. repec:kap:reveho:v:15:y:2017:i:3:d:10.1007_s11150-015-9287-8 is not listed on IDEAS
    5. repec:spr:intemj:v:13:y:2017:i:2:d:10.1007_s11365-016-0409-4 is not listed on IDEAS
    6. Nazim Habibov & Elvin Afandi & Alex Cheung, 2017. "What is the effect of university education on chances to be self-employed in transitional countries?: Instrumental variable analysis of cross-sectional sample of 29 nations," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 487-500, June.
    7. Cardak, Buly A. & Johnston, David W. & Martin, Vance L., 2013. "Intergenerational earnings mobility: A new decomposition of investment and endowment effects," Labour Economics, Elsevier, vol. 24(C), pages 39-47.

    More about this item

    Keywords

    Intergenerational mobility; endogeneity; conditional correlation;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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