The effect of home countrys income on immigrant-origin childrens education: Evidence from Australia

Thu Hoang
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Thu Hoang: Monash University

Warwick-Monash Economics Student Papers from Warwick Monash Economics Student Papers

Abstract: Using plausibly exogenous fluctuations in foreign real income per capita and longitudinal data from Australia, we examine the impact of economic conditions in immigrant parents’ home countries on their children’s academic performance. We find that a one percent increase in real GDP per capita in parents’ home countries leads to a 0.01 standard deviation improvement in children’s standardised test scores. The effect is particularly pronounced among children with parents born in Asia, where extended family ties play a strong role. Our mediation analysis suggests that the impact is likely driven by increased private tutoring. These findings imply that economic conditions in immigrants’ home countries can shape the educational outcomes and future economic prospects of their children in destination countries, likely through family and social networks.

Keywords: immigrants; test scores; macroeconomic conditions; parental input; family. JEL classifications: I21; J11; J15; J22. (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-mig
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