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Primary and Secondary School Quality and Intergenerational Earnings Mobility

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  • Nathan D. Grawe

Abstract

While theory suggests that public expenditures on education may affect intergenerational earnings mobility, the direction of the effect hinges on whether such outlays substitute for or complement private human capital investments. Analysis of U.S. census data, 1940-2000, shows that state-cohorts with low pupil-to-teacher ratios enjoy less intergenerational mobility: a two-standard-deviation reduction in the pupil-to-teacher ratio increases earnings persistence by 40 percent. These results are robust to controls for the average pupil-to-teacher ratio in the state in years the son was not in school, a result contrary to simple endogeneity stories.

Suggested Citation

  • Nathan D. Grawe, 2010. "Primary and Secondary School Quality and Intergenerational Earnings Mobility," Journal of Human Capital, University of Chicago Press, vol. 4(4), pages 331-364.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/658855
    DOI: 10.1086/658855
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    2. Maia Güell & José V. Rodríguez Mora & Chris Telmer, 2007. "Intergenerational Mobility and the Informative Content of Surnames," CEP Discussion Papers dp0810, Centre for Economic Performance, LSE.
    3. You, Jing & Ding, Xinxin & Niño-Zarazúa, Miguel & Wang, Sangui, 2021. "The intergenerational impact of house prices on education: evidence from China," Journal of Housing Economics, Elsevier, vol. 54(C).
    4. Lars J. Lefgren & Jaren C. Pope & David P. Sims, 2022. "Contemporary State Policies and Intergenerational Income Mobility," Journal of Human Resources, University of Wisconsin Press, vol. 57(4), pages 1107-1146.
    5. Liang, Wenquan & Xue, Sen, 2021. "Pandemics and Intergenerational Mobility of Education: Evidence from the 2003 Severe Acute Respiratory Syndrome (SARS) Epidemic in China," GLO Discussion Paper Series 779, Global Labor Organization (GLO).
    6. Maia Güell & José V. Rodríguez Mora & Christopher I. Telmer, 2015. "The Informational Content of Surnames, the Evolution of Intergenerational Mobility, and Assortative Mating," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(2), pages 693-735.
    7. Maia Güell & José V. Rodríguez Mora & Christopher I. Telmer, 2014. "Intergenerational Mobility and the Informational Content of Surnames," Working Papers 2014-01, FEDEA.
    8. Blanden, Jo, 2013. "Cross-national rankings of intergenerational mobility: a comparison of approaches from economics and sociology," LSE Research Online Documents on Economics 59310, London School of Economics and Political Science, LSE Library.
    9. Tharcisio Leone, 2019. "Intergenerational Mobility in Education: Estimates of the Worldwide Variation," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 44(4), pages 1-42, December.

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