TY - JOUR
T1 - The impact of parental income and education on the schooling of their children
AU - Chevalier, Arnaud
AU - Harmon, Colm
AU - O’ Sullivan, Vincent
AU - Walker, Ian
N1 - Publisher Copyright:
© 2013, Chevalier et al.; licensee Springer.
PY - 2013/12/1
Y1 - 2013/12/1
N2 - We investigate the relationship between early school-leaving and parental education and paternal income using UK Labour Force Survey data. OLS estimation reveals modest effects of income, stronger effects of maternal education relative to paternal, and stronger effects on sons than daughters. Using IV to simultaneously model the endogeneity of parental education and income, the maternal education effect disappears, while paternal education remains significant but only for daughters. In our favourite specification, which proxy for permanent income, paternal income becomes insignificant. Thus policies alleviating income constraints to alter schooling decisions may not be as effective as policies which increase permanent income.
AB - We investigate the relationship between early school-leaving and parental education and paternal income using UK Labour Force Survey data. OLS estimation reveals modest effects of income, stronger effects of maternal education relative to paternal, and stronger effects on sons than daughters. Using IV to simultaneously model the endogeneity of parental education and income, the maternal education effect disappears, while paternal education remains significant but only for daughters. In our favourite specification, which proxy for permanent income, paternal income becomes insignificant. Thus policies alleviating income constraints to alter schooling decisions may not be as effective as policies which increase permanent income.
KW - Early school leaving
KW - Intergenerational transmission
UR - http://www.scopus.com/inward/record.url?scp=84983349623&partnerID=8YFLogxK
U2 - 10.1186/2193-8997-2-8
DO - 10.1186/2193-8997-2-8
M3 - Article
AN - SCOPUS:84983349623
SN - 2193-8997
VL - 2
JO - IZA Journal of Labor Economics
JF - IZA Journal of Labor Economics
IS - 1
M1 - 8
ER -