Does increasing parents' schooling raise the schooling of the next generation? Evidence based on conditional second moments

Francis Vella, Lidia Farre and Roger Klein ()

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: This paper investigates the degree of intergenerational transmission ofeducation for individuals from the National Longitudinal Survey of Youth1979. Rather than identifying the causal effect of parental education viainstrumental variables we exploit the feature of the transmissionmechanism responsible for its endogeneity. More explicitly, we assume theintergenerational transfer of unobserved ability is invariant to the economicenvironment. This, combined with the heteroskedasticity resulting from theinteraction of unobserved ability with socioeconomic factors, identifies thiscausal effect. We conclude the observed intergenerational educationalcorrelation reflects both a causal parental educational effect and a transferof unobserved ability.

Keywords: Intergenerational mobility; endogeneity; conditional correlation (search for similar items in EconPapers)
JEL-codes: C31 J62 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2009-03
New Economics Papers: this item is included in nep-edu, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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http://www.ivie.es/downloads/docs/wpasad/wpasad-2009-11.pdf Fisrt version / Primera version, 2009 (application/pdf)

Related works:
Journal Article: Does Increasing Parents’ Schooling Raise the Schooling of the Next Generation? Evidence Based on Conditional Second Moments (2012)
Working Paper: Does Increasing Parents' Schooling Raise the Schooling of the Next Generation? Evidence Based on Conditional Second Moments (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2009-11

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