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Ethnic Capital and Intergenerational Transmission of Educational Attainment

Listed author(s):
  • Postepska, Agnieszka

    ()

    (Georgetown University)

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    This paper studies the role of ethnicity in the intergenerational transmission of educational attainment. Relying on heteroskedasticity to identify parameters in the presence of endogenous regressors, I revisit Borjas ethnic capital hypothesis. I find evidence that the OLS estimates of the effect of ethnic capital on intergenerational transmission of education are biased upwards due to the transfer of unobserved ability. I find that while the role of parental capital has declined over time, ethnic capital has a relatively constant effect on intergenerational transmission of educational attainment. I also find that only women benefit from the quality of the ethnic environment and that the intergenerational transfer of ethnic capital is most prevalent in communities with strong ties measured with endogamy rates.

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    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10851.

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    Length: 24 pages
    Date of creation: Jun 2017
    Handle: RePEc:iza:izadps:dp10851
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    1. Philipp Bauer & Regina Riphahn, 2007. "Heterogeneity in the intergenerational transmission of educational attainment: evidence from Switzerland on natives and second-generation immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(1), pages 121-148, February.
    2. Abdurrahman Aydemir & Wen-Hao Chen & Miles Corak, 2013. "Intergenerational Education Mobility among the Children of Canadian Immigrants," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 107-122, May.
    3. Eleonora Patacchini & Yves Zenou, 2011. "Neighborhood Effects And Parental Involvement In The Intergenerational Transmission Of Education," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 987-1013, December.
    4. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez & Nicholas Turner, 2014. "Is the United States Still a Land of Opportunity? Recent Trends in Intergenerational Mobility," American Economic Review, American Economic Association, vol. 104(5), pages 141-147, May.
    5. Borjas, George J, 1995. "Ethnicity, Neighborhoods, and Human-Capital Externalities," American Economic Review, American Economic Association, vol. 85(3), pages 365-390, June.
    6. Bisin, Alberto & Verdier, Thierry, 2001. "The Economics of Cultural Transmission and the Dynamics of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 298-319, April.
    7. Helena Holmlund & Mikael Lindahl & Erik Plug, 2011. "The Causal Effect of Parents' Schooling on Children's Schooling: A Comparison of Estimation Methods," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 615-651, September.
    8. George J. Borjas, 1992. "Ethnic Capital and Intergenerational Mobility," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 123-150.
    9. Saniter, Nils, 2012. "Estimating Heterogeneous Returns to Education in Germany via Conditional Second Moments," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62050, Verein für Socialpolitik / German Economic Association.
    10. Lídia Farré & Roger Klein & Francis Vella, 2013. "A parametric control function approach to estimating the returns to schooling in the absence of exclusion restrictions: an application to the NLSY," Empirical Economics, Springer, vol. 44(1), pages 111-133, February.
    11. Helena Skyt Nielsen & Michael Rosholm & Nina Smith & Leif Husted, 2003. "The school-to-work transition of 2 nd generation immigrants in Denmark," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(4), pages 755-786, November.
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