Intergenerational Transmission of Education: The Relative Importance of Transmission Channels
Latin American Economic Review, 24(1), pp. 1-44, 2015, doi.org/10.1007/s40503-014-0015-1
44 Pages Posted: 16 Jan 2012 Last revised: 10 Feb 2015
Date Written: January 20, 2015
Abstract
This paper aims at quantifying the relative importance of different transmission channels generating the high levels of intergenerational correlations in education, especially in Latin America. A simultaneous equations model is applied to rich survey data from Mexico. The results show that the economic situation of the family has the highest impact, even more than heritability of cognitive abilities. The long run economic situation seems to matter more than the current consumption level. Parental education affects the schooling outcome directly but also indirectly through the economic situation, which is particularly true for the father.
Keywords: intergenerational transmission of education, social mobility, IQ transmission, inequality, Mexico
JEL Classification: D31, I21, I24, J62
Suggested Citation: Suggested Citation
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