Parents' current income, long-term characteristics and children's education: evidence from the 1970 British Cohort Study
Bratti, Massimiliano (2002) Parents' current income, long-term characteristics and children's education: evidence from the 1970 British Cohort Study. Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers).
WRAP_Bratti_twerp658.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
This paper investigates the effect of parents’ current income and long-term family characteristics on individuals’ highest educational qualification obtained by age 26 using UK data from the 1970 British Cohort Study. The issues of the possible sample selection bias produced by the not completely random omission of current family income and that of its potential endogeneity are addressed, using a hot-deck multiple imputation procedure and including an indicator of child ability, respectively. I find evidence that current family income has a statistically significant positive impact on children’s education, although it is one of negligible magnitude. Long-term family characteristics are far more important.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HN Social history and conditions. Social problems. Social reform
L Education > L Education (General)
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Wages -- Effect of education on, Intergenerational relations -- Great Britain, Parent and child -- Great Britain, Education -- Parent participation|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Number of Pages:||44|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|References:|| Becker, G. (1975) Human Capital. Chicago: Chicago University Press.  Becker, G. and Lewis, H. (1973) ‘On the Interaction Between the Quantity and Quality of Children’, Journal of Political Economy, 82: S279-288.  Becker, G. and Tomes, N. (1976) ‘Child Endowments and the Quantity and Quality of Children’, Journal of Political Economy, 84: S143-162.  Blau, D. M. (1999) ‘The Effect of Income on Child Development’, Review of Economics and Statistics, 81: 261-276.  Blau, F. D. and Grossberg, A. J. (1992) ‘Maternal Labour Supply and Children’s Cognitive Development’, Review of Economics and Statistics, 74: 474-481.  Blundell, R., Dearden, L., Goodman, A. and Reed, H. (1997) Higher Education, Employment and Earnings in Britain. London: The Institute for Fiscal Studies (IFS).  Blundell, R., Dearden, L., Goodman, A. and Reed, H. (2000) ‘The Returns to Higher Education in Britain: Evidence from a British Cohort’, Economic Journal, 110: F82-F99.  Bratti, M. (2001) ‘Oltre la Scuola dell’Obbligo: Un’Analisi Empirica della Decisione di Proseguire nell’Istruzione Post-Obbligatoria in Italia’, Moneta e Credito, 214: 175-203.  Bratti, M. (2002) ‘Parents’ Current Income, Long-Term Characteristics and Children’s Education: Evidence from the 1970 British Cohort Study’, Quaderni di Ricerca n. 174, Dipartimento di Economia, Universit` a degli Studi di Ancona, Ancona.  Brooks-Gunn, J., Duncan, G. J., Klebanov, P. K. and Sealand, N. (1993) ‘Do Neighborhoods Affect Child and Adolescent Development?, American Journal of Sociology, 99: 353-395.  Cameron, S. and Heckman, J. (1998) ‘Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males’, Journal of Political Economy, 106: 262-333.  Cameron, S. and Heckman, J. (2001) ‘The Dynamics of Educational Attainment for Black, Hispanic, and White Males’, Journal of Political Economy, 109: 455-499.  Card, D. (2001) ‘Estimating the Return to Schooling: Progress on Some Persistent Econometrics Problems’, Econometrica, 69: 1127-1160.  Chevalier, A. and Lanot, G. (2002) ‘The Relative effect of Family Characteristics and Financial Situation on Educational Achievement’, Education Economics, 10: 165-181.  Cigno, A. (1993) ‘Intergenerational Transfers Without Altruism’, European Journal of Political Economy, 7: 505-18.  Datcher-Loury, L. (1988) ‘Effects of Mother’s Home Time on Children’s Schooling’, Review of Economics and Statistics, 70: 367-373.  Dearden, L., McIntosh, S., Myck, M. and Vignoles, A. (2002) ‘The Returns to Academic and Vocational Qualifications in Britain’, Bulletin of Economic Research, 54: 249-274.  Elliot, C. D., Murray, D. J. and Pearson, L. S. (1979) British Ability Scales, Manual 4: Tables of Abilities and Norms. Windsor: NFER.  Ermisch, J. and Francesconi, M. (2000a) ‘Educational Choice, Families, and Young People’s Earnings’, Journal of Human Resources, 35: 143-176.  Ermisch, J. and Francesconi, M. (2000b) ‘The Effect of Parents’ Employment on Children’s Educational Attainment’, Institute for Economic and Social Research (ISER) Working Papers n. 31, University of Essex.  Ermisch, J. and Francesconi, M. (2001) ‘Family Matters: Impacts of Family Background on Educational Attainments’, Economica, 68: 137-156.  Feinstein, L. (2000) ‘The Relative Economic Importance of Academic, Psychological and Behavioural Attributes Developed in Childhood’, Center for Economic Performance (CEP) Discussion Papers n. 443, LSE, London.  Feinstein, L. and Symons, J. (1999) ’Attainment in Secondary School’, Oxford Economic Papers, 51: 300-321.  Gambetta, D. (1987) Were They Pushed of Did They Jump? Individual Decision Mechanisms in Education. Cambridge: Cambridge University Press.  Glick, P. and Sahn, D. E. (2000) ‘Schooling of Girls and Boys in a West African Country: The Effects of Parental Education, Income, and Household Structure’, Economics of Education Review, 19: 63-87.  Griliches, Z. (1977) ‘Estimating the Returns to Schooling: Some Econometrics Problems’, Econometrica, 45: 1-22.  Harmon, C. and Walker, I. (2000) ‘Child Outcomes and Child Poverty: Provisional Results on Early School Leaving’, mimeo, University of Warwick, Coventry.  Harmon, C., Oosterbeek, H. and Walker, I. (2000) ‘The Returns to Education: A Review of Evidence, Issues and Deficiencies in the Literature’, Center for the Economics of Education (CEE) Discussion Papers n. 5, LSE, London.  Haveman, R. and Wolfe, B. (1995) ‘The Determinants of Children’s Attainments: A Review of Methods and Findings’, Journal of Economic Literature, 33: 1829-1878.  Katz, L.F. and Summers, L.H. (1989) ‘Industry Rents: Evidence and Implications’, Brooking Papers on Economic Activity, Microeconomics, 209-275.  Kodde, D. A. (1986) ‘Uncertainty and the Demand for Education’, Review of Economics and Statistics, 68: 460-467.  Kodde, D. A. and Ritzen, J. M. M. (1984) ‘Integrating the Consumption and Investment Motives in a Neoclassical Model of Demand for Education’, Kyklos, 37: 598-608.  Kodde, D. A. and Ritzen, J. M. M. (1994) ‘The Demand for Education under Capital Market Imperfections’, in E. Cohn and G. Johnes (eds.), Recent Developments in the Economics of Education. Adelrshot: Elgar.  Lauer, C. (2002) ‘Family Background, Cohort and Education A French-German Comparison’, Discussion Paper No. 02-12, Centre for European Economic Research (ZEW), Mannheim.  Lefebvre, P. and Merrigan, P. (1998) ‘Family Background, Family Income, Maternal Work and Child Development’, Center for Research on Economic Fluctuations and Employment (CREFE) Working Papers No. 78, Universit´e du Qu´ebec `a Montr´eal.  Levhari, D. and Weiss, Y. (1974) ‘The Effect of Risk on the Investment in Human Capital’, American Economic Review, 64: 950-963.  Mander, A. P. and Clayton, D. (2001) ‘HOTDECK: Stata Module to Impute Values Using the Hotdeck Method, Statistical Software Components from Boston College Department of Economics’. Software downloadable at http://fmww.bc.edu//repec//bocode//h//hotdeck.ado  Maurin, E. (2002) ‘The Impact of Parental Income on Early Schooling Transitions: A Re-examination Using Data over Three Generations’, Journal of Public Economics, 85: 301-332.  Mayer, S. (1997) What Money Can’t Buy: Family Income and Children’s Life Chances. Camdridge (MA): Harvard University Press.  McCulloch, A. and Joshi, H.E. (2002) ‘Child Development and Family Resources: Evidence from the Second Generation of The 1958 British Birth Cohort’, Journal of Population Economics, 15: 283-304.  Micklewright, J. (1989) ‘Choice at Sixteen’, Economica, 221: 25-39.  Muellbauer, J. and Lattimore, R. (1995) ‘The Consumption Function: A Theoretical and Empirical Overview’, in Handbook of Applied Econometrics, Volume 1. Macroeconometrics. Oxford: Blackwell.  Plug, E. and Vijverberg, W. (2001) ‘Schooling, Family Background and Adoption: Is It Nature or Is It Nurture?’, IZA Discussion Paper no. 247, IZA, Bonn. Forthcoming in Journal of Political Economy.  Rice, P. G. (1987) ‘The Demand for Post-Compulsory Education in the UK and the Effects of Educational Maintenance Allowances’, Economica, 54: 465-75.  Romer, D. (1996) Advanced Macroeconomics. New York: McGraw-Hill.  Rubin, D. B. and Schenker, N. (1986) ‘Multiple Imputation for Interval Estimation from Simple Random Samples with Ignorable Nonresponse’, Journal of the American Statistical Association, 81: 366-374.  Rubin, D. B. (1987) Multiple Imputation for Nonresponse in Surveys. New York: John Wiley and Sons.  Shea, J. (2000) ‘Does Parents’ Money Matter?’, Journal of Public Economics, 77: 155-84.  Stafford, F. P. (1987) ‘Women’s Work, Sibling Competition, and Children’s School Performance’, American Economic Review, 77: 972-980.  Stata (2001) Stata 7, Reference Su-Z. College Station, Texas: Stata Press.  Stewart, M. B. (1983) ‘On Least Squares Estimation when the Dependent Variable Is Grouped’, Review of Economic Studies, 50: 737-753.|
Actions (login required)