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The Long-Run Impact of Childhood Poverty and the Mediating Role of Education

Listed author(s):
  • Bellani, Luna

    ()

    (University of Konstanz)

  • Bia, Michela

    ()

    (LISER)

This paper examines the role of education as causal channel through which growing up poor affects the economic outcomes in adulthood in the European Union. We apply a potential outcomes approach to quantify those impacts and we provide a sensitivity analysis on possible unobserved confounders, such as child ability. Our estimates indicate that being poor in childhood significantly decreases the level of income in adulthood and increases the average probability of being poor. Moreover, our results reveal a significant role of education in this intergenerational transmission. These results are particularly relevant for Mediterranean and Central and Easter European Countries.

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File URL: http://ftp.iza.org/dp10677.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10677.

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Length: 43 pages
Date of creation: Mar 2017
Handle: RePEc:iza:izadps:dp10677
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  1. Constantine E. Frangakis & Donald B. Rubin, 2002. "Principal Stratification in Causal Inference," Biometrics, The International Biometric Society, vol. 58(1), pages 21-29, March.
  2. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
  3. Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2008. "From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(3), pages 305-327.
  4. Hainmueller, Jens, 2012. "Entropy Balancing for Causal Effects: A Multivariate Reweighting Method to Produce Balanced Samples in Observational Studies," Political Analysis, Cambridge University Press, vol. 20(01), pages 25-46, December.
  5. Martin Huber, 2014. "Identifying Causal Mechanisms (Primarily) Based On Inverse Probability Weighting," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(6), pages 920-943, September.
  6. Flores, Carlos A. & Flores-Lagunes, Alfonso, 2009. "Identification and Estimation of Causal Mechanisms and Net Effects of a Treatment under Unconfoundedness," IZA Discussion Papers 4237, Institute for the Study of Labor (IZA).
  7. Tommaso Nannicini, 2007. "Simulation-based sensitivity analysis for matching estimators," Stata Journal, StataCorp LP, vol. 7(3), pages 334-350, September.
  8. John Ermisch & Marco Francesconi & David J. Pevalin, 2004. "Parental partnership and joblessness in childhood and their influence on young people's outcomes," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 167(1), pages 69-101.
  9. Becker, Sascha O. & Caliendo, Marco, 2007. "mhbounds – Sensitivity Analysis for Average Treatment Effects," IZA Discussion Papers 2542, Institute for the Study of Labor (IZA).
  10. Björklund Anders & Hederos Eriksson Karin & Jäntti Markus, 2010. "IQ and Family Background: Are Associations Strong or Weak?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-14, January.
  11. Black, Sandra E. & Devereux, Paul J. & Salvanes, Kjell G., 2009. "Like father, like son? A note on the intergenerational transmission of IQ scores," Economics Letters, Elsevier, vol. 105(1), pages 138-140, October.
  12. Jo Blanden & Paul Gregg & Lindsey Macmillan, 2007. "Accounting for Intergenerational Income Persistence: Noncognitive Skills, Ability and Education," Economic Journal, Royal Economic Society, vol. 117(519), pages 43-60, March.
  13. Raymond Hicks & Dustin Tingley, 2011. "Causal mediation analysis," Stata Journal, StataCorp LP, vol. 11(4), pages 605-619, December.
  14. Luke Keele & Dustin Tingley & Teppei Yamamoto, 2015. "Identifying Mechanisms Behind Policy Interventions Via Causal Mediation Analysis," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 34(4), pages 937-963, September.
  15. Anna Aizer & Shari Eli & Joseph Ferrie & Adriana Lleras-Muney, 2016. "The Long-Run Impact of Cash Transfers to Poor Families," American Economic Review, American Economic Association, vol. 106(4), pages 935-971, April.
  16. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
  17. Anger, Silke & Heineck, Guido, 2010. "Do Smart Parents Raise Smart Children? The Intergenerational Transmission of Cognitive Abilities," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 1105-1132.
  18. Shea, John, 2000. "Does parents' money matter?," Journal of Public Economics, Elsevier, vol. 77(2), pages 155-184, August.
  19. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, Oxford University Press, vol. 129(4), pages 1553-1623.
  20. repec:hrv:faseco:30750027 is not listed on IDEAS
  21. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
  22. George A. Akerlof & Janet L. Yellen, 1985. "Unemployment Through the Filter of Memory," The Quarterly Journal of Economics, Oxford University Press, vol. 100(3), pages 747-773.
  23. Acemoglu, Daron & Pischke, J. -S., 2001. "Changes in the wage structure, family income, and children's education," European Economic Review, Elsevier, vol. 45(4-6), pages 890-904, May.
  24. Mayer, Susan E. & Lopoo, Leonard M., 2008. "Government spending and intergenerational mobility," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 139-158, February.
  25. Sascha O. Becker & Marco Caliendo, 2007. "Sensitivity analysis for average treatment effects," Stata Journal, StataCorp LP, vol. 7(1), pages 71-83, February.
  26. Marc Piopiunik, 2014. "Intergenerational Transmission of Education and Mediating Channels: Evidence from a Compulsory Schooling Reform in Germany," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(3), pages 878-907, July.
  27. Mealli, Fabrizia & Rubin, Donald B., 2003. "Assumptions allowing the estimation of direct causal effects," Journal of Econometrics, Elsevier, vol. 112(1), pages 79-87, January.
  28. Johannes Haushofer & Jeremy Shapiro, 2016. "The Short-term Impact of Unconditional Cash Transfers to the Poor: ExperimentalEvidence from Kenya," The Quarterly Journal of Economics, Oxford University Press, vol. 131(4), pages 1973-2042.
  29. Hemerijck, Anton, 2012. "Changing Welfare States," OUP Catalogue, Oxford University Press, number 9780199607600.
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