Education policy and intergenerational income mobility: Evidence from the Finnish comprehensive school reform

Sari Pekkala Kerr, Tuomas Pekkarinen and Roope Uusitalo

No 222, Working Papers from Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE

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

Pages: 37 pages
Date: 2006-09-05
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Citations: View citations in EconPapers (27)

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Related works:
Working Paper: Educational 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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