 Why the apple doesn't fall far: understanding intergenerational transmission of human capitalSandra Black, Paul Devereux and Kjell G Salvanes No 2004-12, Working Paper Series from Federal Reserve Bank of San Francisco Abstract: Parents with higher education levels have children with higher education levels. However, is this because parental education actually changes the outcomes of children, suggesting an important spillover of education policies, or is it merely that more able individuals who have higher education also have more able children? This paper proposes to answer this question with a unique dataset from Norway. Using the reform of the education system that was implemented in different municipalities at different times in the 1960s as an instrument for parental education, we find little evidence of a causal relationship between parents? education and children?s education, despite significant OLS relationships. We find 2SLS estimates that are consistently lower than the OLS estimates, with the only statistically significant effect being a positive relationship between mother's education and son's education. These findings suggest that the high correlations between parents? and children?s education are due primarily to family characteristics and inherited ability and not education spillovers. Keywords: Human capital; Education (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fip:fedfwp:2004-12 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in Working Paper Series from Federal Reserve Bank of San Francisco Contact information at EDIRC. |
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