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Education, Self-Selection, and Intergenerational Transmission of Abilities

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  • Adalbert Mayer

Abstract

This article shows that the relationships between earnings and college education across generations can be explained by the intergenerational transmission of two distinct abilities and subsequent self-selection of educational attainment. It is not necessary to invoke credit constraints. The model offers a way to reconcile the predictions of economic theory with empirical results that stress the importance of ability transmission across generations and question the importance of credit constraints for determining college attendance.

Suggested Citation

  • Adalbert Mayer, 2008. "Education, Self-Selection, and Intergenerational Transmission of Abilities," Journal of Human Capital, University of Chicago Press, vol. 2(1), pages 106-128.
    • Handle: RePEc:ucp:jhucap:v:2:i:1:y:2008:p:106-128
    DOI: 10.1086/587143
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    References listed on IDEAS

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    1. Pedro Carneiro & Karsten T. Hansen & James J. Heckman, 2003. "Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College," NBER Working Papers 9546, National Bureau of Economic Research, Inc.
    2. Carneiro, Pedro & Hansen, Karsten T. & Heckman, James J., 2003. "Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College Choice," IZA Discussion Papers 767, Institute of Labor Economics (IZA).
    3. Pedro Carneiro & Karsten T. Hansen & James J. Heckman, 2003. "2001 Lawrence R. Klein Lecture Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College Choice," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 361-422, May.
    4. 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.
    5. Heckman, James J. & Lochner, Lance J. & Todd, Petra E., 2006. "Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 7, pages 307-458, Elsevier.
    6. Erik Plug & Wim Vijverberg, 2003. "Schooling, Family Background, and Adoption: Is It Nature or Is It Nurture?," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 611-641, June.
    7. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-1189, December.
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    Cited by:

    1. Vincenzo Caponi, 2011. "Intergenerational Transmission Of Abilities And Self‐Selection Of Mexican Immigrants," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(2), pages 523-547, May.
    2. Mukoyama, Toshihiko & Sahin, Aysegul, 2006. "Costs of business cycles for unskilled workers," Journal of Monetary Economics, Elsevier, vol. 53(8), pages 2179-2193, November.
    3. Beetsma, Roel & Komada, Oliwia & Makarski, Krzysztof & Tyrowicz, Joanna, 2021. "The political (in)stability of funded social security," Journal of Economic Dynamics and Control, Elsevier, vol. 133(C).
    4. Claver Sanz, Raúl, 2022. "La transmisión intergeneracional de educación: evidencia en América Latina (1870 – 2010) [The Intergenerational Transmission of Education: Evidence from Latin America (1870 - 2010)]," MPRA Paper 111434, University Library of Munich, Germany.
    5. Claver Sanz, Raúl, 2022. "Movilidad entre generaciones en países africanos: evidencia para la educación [Intergenerational mobility in African countries: evidence for education]," MPRA Paper 111678, University Library of Munich, Germany.
    6. Claver Sanz, Raúl, 2022. "¿Cómo evoluciona el nivel educativo entre generaciones en Asia (Pacífico y Oriente Medio)? [How is educational attainment evolving between generations in Asia (Pacific and Middle East)?]," MPRA Paper 111792, University Library of Munich, Germany.
    7. Montserrat Vilalta-Bufi(Universitat de Barcelona) & Ausias Ribo (Universitat de Barcelona), 2012. "Educational expansion, intergenerational mobility and over-education," Working Papers in Economics 284, Universitat de Barcelona. Espai de Recerca en Economia.
    8. Regina Riphahn & Florian Schieferdecker, 2012. "The transition to tertiary education and parental background over time," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(2), pages 635-675, January.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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