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

Author

Listed:
  • Bellani, Luna

    () (University of Konstanz)

  • Bia, Michela

    () (LISER)

Abstract

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.

Suggested Citation

  • Bellani, Luna & Bia, Michela, 2017. "The Long-Run Impact of Childhood Poverty and the Mediating Role of Education," IZA Discussion Papers 10677, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp10677
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    More about this item

    Keywords

    poverty; intergenerational transmission; potential outcome; causal mediation analysis; education;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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