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Does Increasing Parents' Schooling Raise the Schooling of the Next Generation? Evidence Based on Conditional Second Moments

Lidia Farre (), Roger Klein () and Francis Vella

No 3967, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the degree of intergenerational transmission of education for individuals from the National Longitudinal Survey of Youth 1979. Rather than identifying the causal effect of parental education via instrumental variables we exploit the feature of the transmission mechanism responsible for its endogeneity. More explicitly, we assume the intergenerational transfer of unobserved ability is invariant to the economic environment. This, combined with the heteroskedasticity resulting from the interaction of unobserved ability with socioeconomic factors, identifies this causal effect. We conclude the observed intergenerational educational correlation reflects both a causal parental educational effect and a transfer of unobserved ability.

Keywords: conditional correlation; endogeneity; intergenerational mobility (search for similar items in EconPapers)
JEL-codes: C31 J62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu and nep-lab
Date: 2009-01
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Published in: Oxford Bulletin of Economics and Statistics, 2012, 74 (5), 676–690

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Journal Article: Does Increasing Parents’ Schooling Raise the Schooling of the Next Generation? Evidence Based on Conditional Second Moments (2012) Downloads
Working Paper: Does increasing parents' schooling raise the schooling of the next generation? Evidence based on conditional second moments (2009) Downloads
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