Intergenerational transmission of human capital

We provide a selective summary of findings from the empirical literature on intergenerational human capital transmission produced during the last decade. The empirical literature is discussed in relation to the classical Becker-Tomes model of intergenerational transmission of human capital, as well as to extensions of it. We mainly build on evidence from economic studies utilizing quasi-experimental variation and data from high income countries. The findings of the role of parents’’ income and wealth, as well as of universal educational programs, for limiting intergenerational persistence and increasing mobility is reviewed. We discuss whether distinguishing between mechanisms such as early and late investments, or pecuniary and non-pecuniary investments, provides new insights into the role of investments for affecting persistence. We also discuss the recent studies integrating alternative models of endowment and family transmission into the empirical literature on human capital transmission.