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Intergenerational Mobility and the Effects of Parental Education, Time Investment, and Income on Children’s Educational Attainment

Author

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  • George-Levi Gayle
  • Limor Golan
  • Mehmet A. Soytas

Abstract

This article analyzes the mechanisms through which parents? and children?s education are linked. It estimates the causal effect of parental education, parental time with children, and parental income during early childhood on the educational outcomes of children. Estimating the causal effects of time with children, income, and parental education is challenging because parental time with children is usually unavailable in many datasets and because of the problem of endogeneity of parental income, time with children, and education. The authors, therefore, use an instrumental variables approach to estimate the causal effects. They find that once they account for the parental time input with children, parental income during the first five years is no longer statistically significant. The parental time investments of both parents in early childhood are each statistically and quantitatively significant determinants of the educational outcomes of children.

Suggested Citation

  • George-Levi Gayle & Limor Golan & Mehmet A. Soytas, 2018. "Intergenerational Mobility and the Effects of Parental Education, Time Investment, and Income on Children’s Educational Attainment," Review, Federal Reserve Bank of St. Louis, vol. 100(3), pages 281-295.
    • Handle: RePEc:fip:fedlrv:00106
    DOI: 10.20955/r.100.281-95
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    Citations

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    Cited by:

    1. Musab Kurnaz & Mehmet Soytas, 2019. "Early Childhood Investment and Income Taxation," 2019 Meeting Papers 290, Society for Economic Dynamics.
    2. Skarda, Ieva & Asaria, Miqdad & Cookson, Richard, 2022. "Evaluating childhood policy impacts on lifetime health, wellbeing and inequality: Lifecourse distributional economic evaluation," Social Science & Medicine, Elsevier, vol. 302(C).
    3. Gayle, George-Levi & Golan, Limor & Soytas, Mehmet A., 2022. "What is the source of the intergenerational correlation in earnings?," Journal of Monetary Economics, Elsevier, vol. 129(C), pages 24-45.
    4. Yao Pan & Jessica Leight, 2021. "Educational Responses to Migration-Augmented Export Shocks: Evidence from China," Working Papers 2021-14, The George Washington University, Institute for International Economic Policy.
    5. Kurnaz, Musab & Soytas, Mehmet A., 2019. "Intergenerational Income Mobility and Income Taxation," GLO Discussion Paper Series 409, Global Labor Organization (GLO).

    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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