Breaking the cycle? The effect of education on welfare receipt among children of welfare recipients

Michael Bernard Coelli (), David A. Green () and William Warburton

No W04/14, IFS Working Papers from Institute for Fiscal Studies

Abstract: We examine the impact of high school graduation on the probability individuals from welfare backgrounds use welfare themselves. Our data consists of administrative educational records for grade 12 students in a Canadian province linked with their own and their parents' welfare records. We address potential endogeneity problems by: 1) controlling for ability using past test scores; 2) using an instrument for graduation based on school principal fixed effects; and 3) using a Heckman- Singer type unobserved heterogeneity estimator. Graduation would reduce welfare receipt of dropoutsby Ý to 3/4. Effects are larger for individuals from troubled family backgrounds and low income neighbourhoods.

JEL-codes: I38 I21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-ure
Date: 2004-06
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Related works:
Journal Article: Breaking the cycle? The effect of education on welfare receipt among children of welfare recipients (2007)
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