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Does parental employment affect children's educational attainment?

This paper analyzes whether there exists a causal relationship between parental employment and children's educational attainment. We address potential endogeneity problems due to (i) selection of parents in the labor market by estimating a model on sibling differences and (ii) reverse causality by focusing on parents' employment when children are aged 0-3. We use data from the German Socioeconomic Panel. Overall, we find little support that parental employment affects children's educational attainment. We can rule out that having a mother who works one hour more per week lowers the probability of high secondary track attendance by more than 0.1%.

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File URL: https://epub.ub.uni-muenchen.de/2140/1/working_parents_Munich_DP.pdf
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Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 2140.

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Date of creation: 26 Feb 2008
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Handle: RePEc:lmu:muenec:2140
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  1. Loeb, Susanna & Bridges, Margaret & Bassok, Daphna & Fuller, Bruce & Rumberger, Russell W., 2007. "How much is too much? The influence of preschool centers on children's social and cognitive development," Economics of Education Review, Elsevier, vol. 26(1), pages 52-66, February.
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  5. Christian Dustmann, 2004. "Parental background, secondary school track choice, and wages," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 209-230, April.
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  7. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier.
  8. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December.
  9. Orley Ashenfelter & Cecilia Rouse, 1998. "Income, Schooling, and Ability: Evidence from a New Sample of Identical Twins," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 253-284.
  10. Rosenzweig, Mark R & Wolpin, Kenneth I, 1995. "Sisters, Siblings, and Mothers: The Effect of Teen-Age Childbearing on Birth Outcomes in a Dynamic Family Context," Econometrica, Econometric Society, vol. 63(2), pages 303-26, March.
  11. O'Brien, Margaret & Jones, Deborah, 1999. "Children, Parental Employment and Educational Attainment: An English Case Study," Cambridge Journal of Economics, Oxford University Press, vol. 23(5), pages 599-621, September.
  12. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July.
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  14. Sheila Krein & Andrea Beller, 1988. "Educational attainment of children from single-parent families: Differences by exposure, gender, and race," Demography, Springer;Population Association of America (PAA), vol. 25(2), pages 221-234, May.
  15. Arleen Leibowitz, 1974. "Home Investments in Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 432-456 National Bureau of Economic Research, Inc.
  16. Arleen Leibowitz, 1974. "Home Investments in Children," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 111-135 National Bureau of Economic Research, Inc.
  17. John F. Ermisch & Marco Francesconi, 2001. "Family structure and children's achievements," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(2), pages 249-270.
  18. 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.
  19. Magnuson, Katherine A. & Ruhm, Christopher & Waldfogel, Jane, 2007. "Does prekindergarten improve school preparation and performance?," Economics of Education Review, Elsevier, vol. 26(1), pages 33-51, February.
  20. Leibowitz, Arleen, 1974. "Home Investments in Children," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S111-S131, Part II, .
  21. Jane Waldfogel & Wen-Jui Han & Jeanne Brooks-Gunn, 2002. "The effects of early maternal employment on child cognitive development," Demography, Springer;Population Association of America (PAA), vol. 39(2), pages 369-392, May.
  22. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.
  23. Dustmann, Christian & Schönberg, Uta, 2008. "The Effect of Expansions in Maternity Leave Coverage on Children's Long-Term Outcomes," IZA Discussion Papers 3605, Institute for the Study of Labor (IZA).
  24. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages F3-F33, February.
  25. Ermisch, John & Francesconi, Marco, 2002. "The effect of parents' employment on children's educational attainment: 2002 ed," ISER Working Paper Series 2002-21, Institute for Social and Economic Research.
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