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Estimates of the Effect of Parents’ Schooling on Children’s Schooling Using Censored and Uncensored Samples

Author

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  • de Haan, Monique

    (University of Oslo)

  • Plug, Erik

    (University of Amsterdam)

Abstract

In this paper we estimate the impact of parental schooling on child schooling, focus on the problem that children who are still in school constitute censored observations, and evaluate three solutions to it: maximum likelihood approach, replacement of observed with expected years of schooling, and elimination of all school-aged children. Plug (2004) – a recent mobility study that relies on censored data – serves as an illustration. With updated and uncensored versions of previous samples, we re-examine Plug’s estimates and test how the three correction methods deal with censored observations. The one that treats parental expectations as if they were realizations seems to fix the censoring problem quite well.

Suggested Citation

  • de Haan, Monique & Plug, Erik, 2006. "Estimates of the Effect of Parents’ Schooling on Children’s Schooling Using Censored and Uncensored Samples," IZA Discussion Papers 2416, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2416
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    References listed on IDEAS

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    1. Anders Björklund & Mikael Lindahl & Erik Plug, 2006. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(3), pages 999-1028.
    2. Philip Oreopoulos & Marianne E. Page, 2006. "The Intergenerational Effects of Compulsory Schooling," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 729-760, October.
    3. Jere R. Behrman & Mark R. Rosenzweig, 2002. "Does Increasing Women's Schooling Raise the Schooling of the Next Generation?," American Economic Review, American Economic Association, vol. 92(1), pages 323-334, March.
    4. Erik Plug, 2004. "Estimating the Effect of Mother's Schooling on Children's Schooling Using a Sample of Adoptees," American Economic Review, American Economic Association, vol. 94(1), pages 358-368, March.
    5. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, September.
    6. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2005. "Why the Apple Doesn't Fall Far: Understanding Intergenerational Transmission of Human Capital," American Economic Review, American Economic Association, vol. 95(1), pages 437-449, March.
    7. Jere R. Behrman & Mark R. Rosenzweig, 2005. "Does Increasing Women's Schooling Raise the Schooling of the Next Generation? Reply," American Economic Review, American Economic Association, vol. 95(5), pages 1745-1751, December.
    8. Kate L. Antonovics & Arthur S. Goldberger, 2005. "Does Increasing Women's Schooling Raise the Schooling of the Next Generation? Comment," American Economic Review, American Economic Association, vol. 95(5), pages 1738-1744, December.
    9. Kenneth Y. Chay & James L. Powell, 2001. "Semiparametric Censored Regression Models," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 29-42, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Chiara Pronzato, 2008. "Why Educated Mothers don’t Make Educated Children? A Statistical Study in the Intergenerational Transmission of Schooling," CHILD Working Papers wp08_08, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    2. Helena Holmlund & Mikael Lindahl & Erik Plug, 2011. "The Causal Effect of Parents' Schooling on Children's Schooling: A Comparison of Estimation Methods," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 615-651, September.
    3. Chiara Pronzato, 2012. "An examination of paternal and maternal intergenerational transmission of schooling," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(2), pages 591-608, January.
    4. Abdurrahman Aydemir & Wen-Hao Chen & Miles Corak, 2013. "Intergenerational Education Mobility among the Children of Canadian Immigrants," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 107-122, May.
    5. Damien de Walque, 2009. "Parental Education and Children's Schooling Outcomes: Evidence from Recomposed Families in Rwanda," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 723-746, July.
    6. Graciela Sanromán, 2010. "Intergenerational Educational Mobility: evidence from three approaches for Brazil,Chile, Uruguay and the USA (1995-2006)," Documentos de Trabajo (working papers) 0110, Department of Economics - dECON.
    7. Monique de Haan, 2011. "The Effect of Parents' Schooling on Child's Schooling: A Nonparametric Bounds Analysis," Journal of Labor Economics, University of Chicago Press, vol. 29(4), pages 859-892.
    8. Monazza Aslam, 2009. "Education Gender Gaps in Pakistan: Is the Labor Market to Blame?," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 747-784, July.
    9. Elvana Hana & Arsena Gjipali, 2010. "What Determines Upper Secondary School Participation? - Intergenerational Effects Of Education Outcomes In Albania," Journal Articles, Center For Economic Analyses, pages 17-31, June.

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    More about this item

    Keywords

    intergenerational mobility of education; censored observations;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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