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Does Increasing Parents' Schooling Raise the Schooling of the Next Generation? Evidence Based on Conditional Second Moments

  • Farré, Lídia

    ()

    (IAE Barcelona (CSIC))

  • Klein, Roger

    ()

    (Rutgers University)

  • Vella, Francis

    ()

    (Georgetown University)

This paper investigates the degree of intergenerational transmission of education for individuals from the National Longitudinal Survey of Youth 1979. Rather than identifying the causal effect of parental education via instrumental variables we exploit the feature of the transmission mechanism responsible for its endogeneity. More explicitly, we assume the intergenerational transfer of unobserved ability is invariant to the economic environment. This, combined with the heteroskedasticity resulting from the interaction of unobserved ability with socioeconomic factors, identifies this causal effect. We conclude the observed intergenerational educational correlation reflects both a causal parental educational effect and a transfer of unobserved ability.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3967.

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Length: 28 pages
Date of creation: Jan 2009
Date of revision:
Publication status: published in: Oxford Bulletin of Economics and Statistics, 2012, 74 (5), 676–690
Handle: RePEc:iza:izadps:dp3967
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  1. Sandra Black & Paul Devereux & Kjell Salvanes, 2004. "Why the apple doesn't fall far: understanding intergenerational transmission of human capital," Working Paper Series 2004-12, Federal Reserve Bank of San Francisco.
  2. Anders Björklund & Mikael Lindahl & Erik Plug, 2006. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," The Quarterly Journal of Economics, MIT Press, vol. 121(3), pages 999-1028, 08.
  3. Derek Neal, 2005. "Why Has Black-White Skill Convergence Stopped?," NBER Working Papers 11090, National Bureau of Economic Research, Inc.
  4. 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.
  5. 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.
  6. Arnaud Chevalier, 2004. "Parental Education And Child's Education: A Natural Experiment," Royal Economic Society Annual Conference 2004 42, Royal Economic Society.
  7. Raquel Fernandez, 2007. "Women, Work, and Culture," NBER Working Papers 12888, National Bureau of Economic Research, Inc.
  8. Fernández, Raquel, 2007. "Women, Work and Culture," CEPR Discussion Papers 6153, C.E.P.R. Discussion Papers.
  9. 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.
  10. Bruce Sacerdote, 2004. "What Happens When We Randomly Assign Children to Families?," NBER Working Papers 10894, National Bureau of Economic Research, Inc.
  11. 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, 04.
  12. 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.
  13. 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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