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Family Structure, Human Capital Investment, and Aggregate College Attainment

Author

Listed:
  • Adam Blandin

    (Virginia Commonwealth University)

  • Christopher Herrington

    (Virginia Commonwealth University)

Abstract

We provide new facts about the increase in US college attainment from 1995-2015. College attendance grew more among children from low resource families than among those from high resource families (7pp vs 1pp). However, college completion grew less among low resource children than high resource children (4pp vs 13pp). We propose a theory to explain the increase in aggregate college completion since 1995 that is consistent with these trends. The theory has two key components: (i) High resource families increased pre-college investment relative to low-resource families in response to a growing college wage premium. (ii) Pre-college investment is an important determinant of college completion conditional on attendance. Consistent with this theory, we provide empirical evidence of growing gaps in pre-college investment and college preparedness between children from high and low resource families. Finally, we construct a model of intergenerational human capital investment and college attainment to quantitatively test our theory.

Suggested Citation

  • Adam Blandin & Christopher Herrington, 2018. "Family Structure, Human Capital Investment, and Aggregate College Attainment," 2018 Meeting Papers 446, Society for Economic Dynamics.
    • Handle: RePEc:red:sed018:446
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    References listed on IDEAS

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    Cited by:

    1. Kevin Donovan & Christopher Herrington, 2019. "Factors Affecting College Attainment and Student Ability in the U.S. since 1900," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 31, pages 224-244, January.
    2. Matthias Doepke & Giuseppe Sorrenti & Fabrizio Zilibotti, 2019. "The Economics of Parenting," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 55-84, August.
    3. Brant Abbott, 2022. "Incomplete Markets and Parental Investments in Children," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 44, pages 104-124, April.
    4. Brant Abbott, 2022. "Incomplete Markets and Parental Investments in Children," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 44, pages 104-124, April.
    5. Kevin Donovan & Christopher Herrington, 2019. "Factors Affecting College Attainment and Student Ability in the U.S. since 1900," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 31, pages 224-244, January.

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