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Impact Of Child Quality On Earnings: The Productivity‐Of‐Schooling Hypothesis

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  • PHILIP Ganderton
  • PETER Griffin

Abstract

This paper investigates the relationship between average earnings, education (measured by years of schooling), and rates of return to education for major racial/ethnic groups in the United States. It considers the effect of including previously omitted “productivity‐of‐schooling” (also referred to here as “child quality”) variables. An upward‐sloping average education, rate‐of‐return‐to‐education profile exists for His‐panics, blacks, and whites. Productivity‐of‐schooling (i.e., child quality) measures– including family size, family composition, ability, and parental inputs–significantly affect earnings and rates of return to education. The results here are consistent with Chiswick (1988). Conditions within the family play a larger role in determining the value of education for minority males than for white males, a conclusion of obvious interest to policymakers.

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  • PHILIP Ganderton & PETER Griffin, 1993. "Impact Of Child Quality On Earnings: The Productivity‐Of‐Schooling Hypothesis," Contemporary Economic Policy, Western Economic Association International, vol. 11(3), pages 39-47, July.
    • Handle: RePEc:bla:coecpo:v:11:y:1993:i:3:p:39-47
    DOI: 10.1111/j.1465-7287.1993.tb00388.x
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    References listed on IDEAS

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    1. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    2. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
    3. Barry R. Chiswick, 1988. "Differences in Education and Earnings Across Racial and Ethnic Groups: Tastes, Discrimination, and Investments in Child Quality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(3), pages 571-597.
    4. Hanushek, Eric A, 1992. "The Trade-Off between Child Quantity and Quality," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 84-117, February.
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    1. Yih-chyi Chuang & Chen-Yeng Chao, 2001. "Educational choice, wage determination, and rates of return to education in Taiwan," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(4), pages 479-504, November.

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