Does increasing parents' schooling raise the schooling of the Next Generation? evidence based on conditional second moments

Lídia Farré, Roger Klein, Francis Vella

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

Abstract

This article investigates the degree of intergenerational transmission of education for individuals from the National Longitudinal Survey of Youth 1979. Rather than identifying the causal effect of parental education via instrumental variables we exploit the feature of the transmission mechanism responsible for its endogeneity. More explicitly, we assume the intergenerational transfer of unobserved ability is invariant to the economic environment. This, combined with the heteroskedasticity resulting from the interaction of unobserved ability with socioeconomic factors, identifies the causal effect. We conclude that the observed intergenerational educational correlation reflects both a causal parental educational effect and a transfer of unobserved ability.

Original languageEnglish (US)
Pages (from-to)676-690
Number of pages15
JournalOxford Bulletin of Economics and Statistics
Volume74
Issue number5
DOIs
StatePublished - Oct 2012

ASJC Scopus subject areas

  • Statistics and Probability
  • Social Sciences (miscellaneous)
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

Fingerprint

Dive into the research topics of 'Does increasing parents' schooling raise the schooling of the Next Generation? evidence based on conditional second moments'. Together they form a unique fingerprint.

Cite this