The impact of parental income and education on the schooling of their children

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dc.contributor.author Chevalier, Arnaud
dc.contributor.author Harmon, Colm
dc.contributor.author O'Sullivan, Vincent
dc.contributor.author Walker, Ian
dc.date.accessioned 2011-01-07T14:42:00Z
dc.date.available 2011-01-07T14:42:00Z
dc.date.issued 2010-07-01
dc.identifier.uri http://hdl.handle.net/10197/2693
dc.description.abstract This paper addresses the intergenerational transmission of education and investigates the extent to which early school leaving (at age 16) may be due to variations in parental background. An important contribution of the paper is to distinguish between the causal effects of parental income and parental education levels. Least squares estimation reveals conventional results – weak effects of income (when the child is 16), stronger effects of maternal education than paternal, and stronger effects on sons than daughters. We find that the education effects remain significant even when household income is included. However, when we use instrumental variable methods to simultaneously account for the endogeneity of parental education and paternal income, only maternal education remains significant (for daughters only) and becomes stronger. These estimates are consistent to various set of instruments. The impact of paternal income varies between specifications but become insignificant in our preferred specification. Our results provide limited evidence that policies alleviating income constraints at age 16 can alter schooling decisions but that policies increasing permanent income would lead to increased participation (especially for daughters). There is also evidence of intergenerational transmissions of education choice from mothers to daughters. en
dc.description.sponsorship Not applicable en
dc.format.extent 839263 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin. Geary Institute en
dc.relation.ispartofseries UCD Geary Institute Discussion Paper Series en
dc.relation.ispartofseries WP 10 32 en
dc.relation.requires Economists Online Collection en
dc.subject Early school leaving en
dc.subject Intergenerational transmission en
dc.subject.lcsh Parent and child en
dc.subject.lcsh Intergenerational relations en
dc.subject.lcsh Dropouts en
dc.subject.lcsh Dropout behavior, Prediction of en
dc.title The impact of parental income and education on the schooling of their children en
dc.type Working Paper en
dc.internal.availability Full text available en
dc.internal.webversions Publisher's version en
dc.internal.webversions http://ideas.repec.org/p/ucd/wpaper/201032.html en
dc.status Not peer reviewed en
dc.neeo.contributor Chevalier|Arnaud|aut| en
dc.neeo.contributor Harmon|Colm|aut|UCD0009 en
dc.neeo.contributor O'Sullivan|Vincent|aut| en
dc.neeo.contributor Walker|Ian|aut| en


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