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Books Are Forever: Early Life Conditions, Education and Lifetime Income

Author

Listed:
  • Brunello, Giorgio

    () (University of Padova)

  • Weber, Guglielmo

    () (University of Padova)

  • Weiss, Christoph T.

    () (European Investment Bank)

Abstract

In this paper we estimate the effect of education on lifetime earnings in Europe, by distinguishing between individuals who lived in rural or urban areas during childhood and between individuals who had access to many or few books at age ten. We instrument years of education using reforms of compulsory education in nine different countries, and find that individuals in rural areas were most affected by the reforms while individuals with many books at home mostly benefited from education. Our main result is that books at home at age ten have had long-lasting beneficial effects on the individuals who were pushed by the reforms to increase their years of education.

Suggested Citation

  • Brunello, Giorgio & Weber, Guglielmo & Weiss, Christoph T., 2012. "Books Are Forever: Early Life Conditions, Education and Lifetime Income," IZA Discussion Papers 6386, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp6386
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    Cited by:

    1. Enkelejda Havari & Marco Savegnago, 2014. "The causal effect of parents’ schooling on children’s schooling in Europe. A new IV approach," CEIS Research Paper 315, Tor Vergata University, CEIS, revised 12 May 2014.
    2. Elena del Rey & Sergi Jiménez-Martín & Judit Vall-Castello, 2015. "The Effect of Changes in the Statutory Minimum Working Age on Educational, Labor And Health Outcomes," Working Papers 834, Barcelona Graduate School of Economics.
    3. Luis Aranda & Martin Siyaranamual, 2014. "Are Smarter People Better Samaritans? Effect of Cognitive Abilities on Pro-Social Behaviors," Working Papers 2014:06, Department of Economics, University of Venice "Ca' Foscari".
    4. John Jerrim & Álvaro Choi, 2013. "The mathematics skills of school children: how does England compare to the high performing east Asian jurisdictions?," Working Papers 2013/12, Institut d'Economia de Barcelona (IEB).
    5. John Jerrim & Alvaro Choi, 2013. "The mathematics skills of school children: How does England compare to the high performing East Asian jurisdictions?," DoQSS Working Papers 13-03, Quantitative Social Science - UCL Social Research Institute, University College London.
    6. Jerrim, J. & John Micklewright, 2013. "GINI DP 65: Socioeconomic gradients in children’s cognitive skills: are cross-country comparisons robust to who reports family background?," GINI Discussion Papers 65, AIAS, Amsterdam Institute for Advanced Labour Studies.
    7. Kawaguchi, Daiji, 2016. "Fewer school days, more inequality," Journal of the Japanese and International Economies, Elsevier, vol. 39(C), pages 35-52.
    8. Avendano, Mauricio & Berkman, Lisa F. & Brugiavini, Agar & Pasini, Giacomo, 2015. "The long-run effect of maternity leave benefits on mental health: Evidence from European countries," Social Science & Medicine, Elsevier, vol. 132(C), pages 45-53.
    9. Ciani, Emanuele, 2016. "Retirement, pension eligibility and home production," Labour Economics, Elsevier, vol. 38(C), pages 106-120.
    10. Martina Celidoni & Chiara Dal Bianco & Guglielmo Weber, 2013. "Early retirement and cognitive decline. A longitudinal analysis using SHARE data," "Marco Fanno" Working Papers 0174, Dipartimento di Scienze Economiche "Marco Fanno".
    11. Cathles, Alison & Ritzen, Jo, 2017. "Money Counts, but So Does Timing: Public Investment and Adult Competencies," IZA Discussion Papers 10565, Institute of Labor Economics (IZA).
    12. Adam M. Lavecchia & Heidi Liu & Philip Oreopoulos, 2014. "Behavioral Economics of Education: Progress and Possibilities," NBER Working Papers 20609, National Bureau of Economic Research, Inc.
    13. Manuel Flores & Adriaan Kalwij, 2014. "The associations between early life circumstances and later life health and employment in Europe," Empirical Economics, Springer, vol. 47(4), pages 1251-1282, December.
    14. Laura Crespo & Borja López-Noval & Pedro Mira, 2013. "Compulsory Schooling, Education and Mental Health: New Evidence from SHARELIFE," Working Papers wp2013_1304, CEMFI.
    15. John Jerrim & John Micklewright, 2012. "Socioeconomic gradients in children's cognitive skills: Are cross-country comparisons robust to who reports family background?," DoQSS Working Papers 12-06, Quantitative Social Science - UCL Social Research Institute, University College London.
    16. Antonello E. Scorcu & Laura Vici, 2013. "Economic and cultural factors and illegal copying in the university textbook market," ACEI Working Paper Series AWP-01-2013, Association for Cultural Economics International, revised Feb 2013.
    17. Crespo, Laura & López-Noval, Borja & Mira, Pedro, 2014. "Compulsory schooling, education, depression and memory: New evidence from SHARELIFE," Economics of Education Review, Elsevier, vol. 43(C), pages 36-46.
    18. Bassetti, Thomas & Rebba, Vincenzo, 2015. "Getting to the Roots of Long-Term Care Needs: A Regression Tree Analysis," MPRA Paper 66167, University Library of Munich, Germany.
    19. Michal Brzezinski, 2017. "Childhood circumstances, personality traits and adult-life economic outcomes in developing countries: Evidence from STEP," IBS Working Papers 05/2017, Instytut Badan Strukturalnych.
    20. Enkelejda Havari & Marco Savegnago, 2013. "The causal effect of parents� schooling on children�s schooling in Europe. A new IV approach," Working Papers 2013:30, Department of Economics, University of Venice "Ca' Foscari".

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    More about this item

    Keywords

    early conditions; education; lifetime income; Europe;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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