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Economic Uncertainty, Parental Selection and Children’s Educational Outcomes

Author

Listed:
  • Arnaud Chevalier

    (IZA; Royal Holloway, University of London; UCD Geary Institute for Public Policy, University College Dublin; ROA, Maastricht University; SFI, Copenhagen)

  • Olivier Marie

    (ROA, Maastricht University; CEP, London School of Economics, IZA; CESIfo, Munich)

Abstract

After the fall of the Berlin Wall, East Germany experienced an unprecedented temporary drop in fertility driven by economic uncertainty. Using various educational measures, we show that the children born during this nativity slump perform worse from an early age onwards. Consistent with negative selection, mothers who gave birth in that period had worse observed personal characteristics. These children are also less likely to have grown up within stable family environment. Investigating underlying mechanisms reveals that parental educational input and emotional attachment were also lower for these children. Finally, sibling analysis enable us to reject time of birth effects.

Suggested Citation

  • Arnaud Chevalier & Olivier Marie, 2015. "Economic Uncertainty, Parental Selection and Children’s Educational Outcomes," Working Papers 201506, Geary Institute, University College Dublin.
  • Handle: RePEc:ucd:wpaper:201506
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    References listed on IDEAS

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    8. James Heckman & Rodrigo Pinto & Peter Savelyev, 2013. "Understanding the Mechanisms through Which an Influential Early Childhood Program Boosted Adult Outcomes," American Economic Review, American Economic Association, vol. 103(6), pages 2052-2086, October.
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    Cited by:

    1. Friehe, Tim & Müller, Helge & Neumeier, Florian, 2018. "The effect of Western TV on crime: Evidence from East Germany," European Journal of Political Economy, Elsevier, vol. 55(C), pages 346-372.
    2. Andreas Thiemann, 2016. "How Does Maternal Pension Wealth Affect Family Old-Age Savings in Germany?," Discussion Papers of DIW Berlin 1560, DIW Berlin, German Institute for Economic Research.
    3. Ofer Malamud & Cristian Pop-Eleches & Miguel Urquiola, 2016. "Interactions Between Family and School Environments: Evidence on Dynamic Complementarities?," NBER Working Papers 22112, National Bureau of Economic Research, Inc.
    4. repec:spr:jlabre:v:39:y:2018:i:3:d:10.1007_s12122-018-9268-9 is not listed on IDEAS
    5. Lee, Soohyung & Orsini, Chiara, 2018. "Girls and Boys: Economic Crisis, Fertility, and Birth Outcomes," IZA Discussion Papers 11531, Institute of Labor Economics (IZA).
    6. repec:eee:jeborg:v:151:y:2018:i:c:p:19-41 is not listed on IDEAS
    7. Tim Friehe & Helge Müller & Florian Neumeier, 2019. "Media's Role in the Making of a Democrat: Evidence from East Germany," CESifo Working Paper Series 7485, CESifo Group Munich.

    More about this item

    Keywords

    Parental selection; fertility; economic uncertainty; education;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • I20 - Health, Education, and Welfare - - Education - - - General

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