The Impact of Parental Income and Education on the Schooling of their

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 24.03.2009, 12:15 - 13:30


Presentation by 

Ian Walker (Lancaster University)


This paper addresses the intergeneration transmission of education and investigates the extent to which early school leaving (at age 16) may be due to variations in parental income and education levels. Least squares estimation reveals conventional results - stronger effects of maternal education than paternal, and stronger effects of income on sons than daughters. We find that the education effects remain significant even when household income is included and vice versa. We instrument both education and income and find that the strong effects of parental education and income become larger and remain significant. The results imply strong intergenerational transmission and suggests that UK policy of raising school leaving ages further and reductions in child poverty will be effective.

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