Educational policy and intergenerational income mobility: evidence from the Finnish comprehensive school reform

Tuomas Pekkarinen, Sari Pekkala Kerr and Roope Uusitalo

No 2006:13, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper estimates the effect of a major education reform on the intergenerational income mobility in Finland. The Finnish comprehensive school reform of 1972-1977 replaced the old two-track school system with a uniform nine-year comprehensive school and significantly reduced the degree of heterogeneity in the Finnish primary and secondary education. We estimate the effect of this reform on the intergenerational income elasticity using a representative sample of males born during 1960-1966. The identification strategy relies on a difference-in-differences approach and exploits the fact that the reform was implemented gradually across country during a six-year period. The results indicate that the reform reduced the intergenerational income elasticity by about seven percentage points.

Keywords: Intergenerational mobility; education; comprehensive school reform (search for similar items in EconPapers)
JEL-codes: I20 J62 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2006-11-11
New Economics Papers: this item is included in nep-edu, nep-hrm and nep-ure
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Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Education Policy and Intergenerational Income Mobility: Evidence from the Finnish Comprehensive School Reform (2006)
Working Paper: Education policy and intergenerational income mobility: Evidence from the Finnish comprehensive school reform (2006)
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