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

Abstract

Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. 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

State Mandates, Housing Elements, and Low-income Housing Production

“…A supply-side strategy should increase the housing supply to deflate existing housing prices or provide new units at all prices (Galster 1997;Listokin 1976). Alternatively, a demand-side strategy should increase low-income housing consumption by directly raising household incomes through vouchers or indirectly with compulsory education (Chevalier et al 2005;Landis and McClure 2010). The housing element is a "quasi" supply-side strategy because it attends to low-income housing needs, but federal or state agencies do not provide consistent subsidies for planned low-income units, deficiencies in household incomes, or increases in housing prices.…”

Measurement in education

“…24 In cross-sectional surveys a consistent significant positive relationship between parental income and schooling outcomes is found (Blau, 1999;Chevalier et al, 2013). Also when adoption is used as a natural experiment to exclude genetically transferred ability as a factor of influence, a significant relationship with income remains (Plug & Vijverberg, 2005).…”

“…On the parental side, Chapter 3 uses the measure of household income and Chapter 4 parental education. Both measures are widely used in empirical analyses of intergenerational mobility (e. g. Blau, 1999;Chevalier, Harmon, O'Sullivan, & Walker, 2013). Compared to other measures, they are easy to operationalize and widely available, as in our case, sometimes even from administrative sources.…”

“…In this case, intergenerational mobility is defined in terms of parental income and students' test scores at the end of primary school. The extent to which school success depends on parental income is often estimated based on information assessed in parental surveys (see e. g. Blau, 1999;Chevalier et al, 2013;Plug & Vijverberg, 2005). However, participation in the latter is potentially not random.…”

“…The relationship between parental income and children's schooling outcomes is predominantly estimated with survey data (see, e. g. Blau, 1999;Chevalier et al, 2013;Plug & Vijverberg, 2005). 20 A potentially important issue in this literature is that survey response may be nonrandom.…”