Why the apple doesn't fall far : understanding intergenerational transmission of human capital

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Title: Why the apple doesn't fall far : understanding intergenerational transmission of human capital
Authors: Devereux, Paul J.
Black, Sandra E.
Salvanes, Kjell G.
Permanent link: http://hdl.handle.net/10197/750
Date: Oct-2003
Abstract: Parents with higher education levels have children with higher education levels. However, is this because parental education actually changes the outcomes of children, suggesting an important spillover of education policies, or is it merely that more able individuals who have higher education also have more able children? This paper proposes to answer this question by using a unique dataset from Norway. Using the reform of the education system that was implemented in different municipalities at different times in the 1960s as an instrument for parental education, we find little evidence of a causal relationship between parents’ education and children’s education, despite significant OLS relationships. We find 2SLS estimates that are consistently lower than the OLS estimates with the only statistically significant effect being a positive relationship between mother's education and son's education. These findings suggest that the high correlations between parents’ and children’s education are due primarily to family characteristics and inherited ability and not education spillovers.
Type of material: Working Paper
Publisher: Institute for the Study of Labor
Copyright (published version): The Institute for the Study of Labor (IZA) 2003
Keywords: Intergenerational mobility;Education;Educational reform
Subject LCSH: Educational attainment
Parent and child
Educational change--Norway
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Research Collection

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