EconPapers    
Economics at your fingertips  
 

Is education the mechanism through which family background affects economic outcomes? A generalised approach to mediation analysis

Silvia Mendolia and Peter Siminski ()

Economics of Education Review, 2017, vol. 59, issue C, 1-12

Abstract: We seek to quantify the role of education as a mechanism through which family background affects economic outcomes. To this end, we generalise mediation analysis to allow for multidimensional treatments. This improves the validity of mediation analysis for our application, in which family background is exogenous and multidimensional. Our approach allows the mediating role of education to vary across background characteristics, whilst also estimating its overall mediating effect. We estimate that educational attainment explains 21%–37% of the family background effect on hourly earnings in Australia, and only 13%–19% of the effect on wealth. We argue that these estimates are likely upward-biased. Therefore the link between family background and economic outcomes operates mostly through other mechanisms.

Keywords: Mediation analysis; Intergenerational mobility; Equality of opportunity (search for similar items in EconPapers)
JEL-codes: I24 C49 J62 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0272775716305982
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:59:y:2017:i:c:p:1-12

Access Statistics for this article

Economics of Education Review is currently edited by E. Cohn

More articles in Economics of Education Review from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-08-09
Handle: RePEc:eee:ecoedu:v:59:y:2017:i:c:p:1-12