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The Effect of Parental Background on Track Choices and Wages

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  • Jean-Marc Falter
  • Giovanni Ferro Luzzi
  • Federica Sbergami

Abstract

Intergenerational links are often investigated by computing educational attainment correlations between parents and children, even though parental background may influence outcomes at earlier stages of the educational path. Because of early school track selection and widespread vocational training, this effect may be quite important in the Swiss context. We first investigate the importance of parental background variables for upper secondary educational attainment over the last 6 decades. We next estimate the impact of parental background on earnings. This effect is shown to depend on the magnitude of intergenerational correlations, the returns to qualifications and the availability of further training for those having ended up in a low educational track at age 15. The impact of tracking at age 15 on wage inequality is found to be relatively small in Switzerland, comparing to results for Germany. Relatively low returns from academic education best explain this pattern.

Suggested Citation

  • Jean-Marc Falter & Giovanni Ferro Luzzi & Federica Sbergami, 2011. "The Effect of Parental Background on Track Choices and Wages," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(II), pages 157-180, June.
    • Handle: RePEc:ses:arsjes:2011-ii-2
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    References listed on IDEAS

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    1. Daniele Checchi & Luca Flabbi, 2013. "Intergenerational Mobility and Schooling Decisions in Germany and Italy: The Impact of Secondary School Tracks," Rivista di Politica Economica, SIPI Spa, issue 3, pages 7-57, July-Sept.
    2. Philipp Bauer & Regina Riphahn, 2007. "Heterogeneity in the intergenerational transmission of educational attainment: evidence from Switzerland on natives and second-generation immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(1), pages 121-148, February.
    3. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 257-298, National Bureau of Economic Research, Inc.
    4. Bauer, Philipp & Riphahn, Regina T., 2006. "Timing of school tracking as a determinant of intergenerational transmission of education," Economics Letters, Elsevier, vol. 91(1), pages 90-97, April.
    5. Christian Dustmann, 2004. "Parental background, secondary school track choice, and wages," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 209-230, April.
    6. Simone N. Tuor & Uschi Backes‐Gellner, 2010. "Risk‐return trade‐offs to different educational paths: vocational, academic and mixed," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(5), pages 495-519, August.
    7. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
    8. Alejandra Cattaneo & Sandra Hanslin & Rainer Winkelmann, 2007. "The Apple Falls Increasingly Far: Parent-Child Correlation in Schooling and the Growth of Post-Secondary Education in Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(II), pages 133-153, June.
    9. Gavan Conlon, 2005. "The Determinants of Undertaking Academic and Vocational Qualifications in the United Kingdom," Education Economics, Taylor & Francis Journals, vol. 13(3), pages 299-313.
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    Cited by:

    1. Valérie Lessard & Simon Larose & Stéphane Duchesne & Bei Feng, 2014. "Tracking in High School Mathematics: Individual, Social, and School-Based Determinants in an Education Reform Context," Journal of Educational and Developmental Psychology, Canadian Center of Science and Education, vol. 4(2), pages 102-102, November.
    2. Jean Marc Falter & Florian Wendelspiess Chávez Juárez & Giovanni Ferro-Luzzi, 2012. "Does Tracking Shape the Intergenerational Transmission of Educational Attainment? Evidence from Switzerland," Working Papers halshs-00771941, HAL.

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    More about this item

    Keywords

    intergenerational mobility; upper secondary education; returns to education;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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