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The Long-Run Impact of Childhood Poverty and the Mediating Role of Education

Luna Bellani () and Michela Bia ()
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Michela Bia: LISER

No 10677, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper examines the role of education as causal channel through which growing up poor affects the economic outcomes in adulthood in the European Union. We apply a potential outcomes approach to quantify those impacts and we provide a sensitivity analysis on possible unobserved confounders, such as child ability. Our estimates indicate that being poor in childhood significantly decreases the level of income in adulthood and increases the average probability of being poor. Moreover, our results reveal a significant role of education in this intergenerational transmission. These results are particularly relevant for Mediterranean and Central and Easter European Countries.

Keywords: causal mediation analysis; potential outcome; intergenerational transmission; poverty; education (search for similar items in EconPapers)
JEL-codes: D31 I24 I32 J62 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2017-03
New Economics Papers: this item is included in nep-edu and nep-eur
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Published - revised version published in: Journal of the Royal Statistical Society. Series A, 2019, 182 (1), 37-68

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