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The impact of parental income and education on the schooling of their children

Year: 2013
Type: article
Study design: Observational Study
Abstract: We investigate the relationship between early school-leaving and parental education and paternal income using UK Labour Force Survey data. OLS estimation reveals modest effects of income, stronger effects of maternal education relative to paternal, and stronger effects on sons than daughters. Using IV to simultaneously model the endogeneity of parental education and income, the maternal education effect disappears, while paternal education remains significant but only for daughters. In our favourite specification, which proxy for permanent income, paternal income becomes insignificant. Thus policies alleviating income constraints to alter schooling decisions may not be as effective as policies which increase permanent income. JEL codes I20; J62
DOI: 10.1186/2193-8997-2-8
Authors: Arnaud Chevalier, Colm Harmon, Vincent O’ Sullivan, Ian Walker
Institutions: Royal Holloway University of London, IZA - Institute of Labor Economics, The University of Sydney, Economic and Social Research Institute, Trinity College Dublin, Lancaster University
Language: English
Open Access status: hybrid
Estimated APC paid: $1,535
Funders: Harvard University, University of Essex, Nuffield Foundation, University of Warwick, University of Glasgow, University College Dublin, RMIT University
OpenAlex ID: W2147450495
FWCI: 32.61
Cites: 73
Cited by: 337
Related to: 8