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Financial Transfers and Educational Achievement

Arnaud Chevalier and Gauthier Lanot ()

No 2000/01, Keele Department of Economics Discussion Papers (1995-2001) from Department of Economics, Keele University

Abstract: Pupils from poorer background are commonly observed to have lower schooling than other pupils. However, the effect of family income on the child’s educational attainment is unclear. The effect could be direct and due to financial constraints preventing parental investment in their children’s schooling, or indirect when being brought up in a poorer background is associated with some unobservable characteristics reducing schooling. We propose a methodology that separates these effects and find that the indirect effect dominates the direct effect. A policy of educational allowance has no significant effect on post-compulsory education decision making. It appears that some family characteristics have long-term effects on the decision to invest in education over and above the possible financial constraint.

Keywords: Schooling decision; Education Maintenance Allowance; Family background (search for similar items in EconPapers)
JEL-codes: I21 I22 J13 (search for similar items in EconPapers)
Date: 2000-10
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Published in Education Economics, August 2002, Vol 10(2), pages 165-181.

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