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Genetic Endowments, Educational Outcomes and the Mediating Influence of School Investments

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  • Benjamin W. Arold
  • Paul Hufe
  • Marc Stoeckli

Abstract

Genetic endowments are fixed at conception and matter for the educational attainment of individuals. Do investments in schooling environments mitigate or magnify the outcomes of this genetic lottery? Using data from a representative sample of US adolescents, we analyse the interdependent associations of genetic endowments, teacher quality and teacher quantity with educational attainment. Our results suggest that higher-quality teachers act as substitutes for genetic endowments: a 1 SD increase in teacher quality reduces the positive association between educational attainment and a 1 SD increase in the relevant polygenic score from 0.37 to 0.30 years—a decrease of 20%. In particular, high-quality teachers increase the probability that genetically disadvantaged students complete college. This increase is underpinned by gains in health, language ability, patience, and risk aversion.

Suggested Citation

  • Benjamin W. Arold & Paul Hufe & Marc Stoeckli, 2022. "Genetic Endowments, Educational Outcomes and the Mediating Influence of School Investments," CESifo Working Paper Series 9841, CESifo.
    • Handle: RePEc:ces:ceswps:_9841
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp9841.pdf
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    References listed on IDEAS

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    1. Anderson, Michael L, 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt15n8j26f, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Raj Chetty & John N. Friedman & Jonah E. Rockoff, 2014. "Measuring the Impacts of Teachers I: Evaluating Bias in Teacher Value-Added Estimates," American Economic Review, American Economic Association, vol. 104(9), pages 2593-2632, September.
    3. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
    4. Almlund, Mathilde & Duckworth, Angela Lee & Heckman, James & Kautz, Tim, 2011. "Personality Psychology and Economics," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 1-181, Elsevier.
    5. Doorslaer, Eddy van & Jones, Andrew M., 2003. "Inequalities in self-reported health: validation of a new approach to measurement," Journal of Health Economics, Elsevier, vol. 22(1), pages 61-87, January.
    6. Na'ama Shenhav, 2021. "Lowering Standards to Wed? Spouse Quality, Marriage, and Labor Market Responses to the Gender Wage Gap," The Review of Economics and Statistics, MIT Press, vol. 103(2), pages 265-279, May.
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    Cited by:

    1. Buser, Thomas & Ahlskog, Rafael & Johannesson, Magnus & Koellinger, Philipp & Oskarsson, Sven, 2023. "Using Genes to Explore the Relationship of Cognitive and Non-cognitive Skills with Education and Labor Market Outcomes," IZA Discussion Papers 16125, Institute of Labor Economics (IZA).
    2. Thomas Buser & Rafael Ahlskog & Magnus Johannesson & Philipp Koellinger & Sven Oskarsson, 2021. "Using Genes to Explore the Effects of Cognitive and Non-cognitive Skills on Education and Labor Market Outcomes," Tinbergen Institute Discussion Papers 21-088/I, Tinbergen Institute, revised 29 Mar 2023.
    3. Buser, Thomas & Ahlskog, Rafael & Johannesson, Magnus & Koellinger, Philipp & Oskarsson, Sven, 2024. "The causal effect of genetic variants linked to cognitive and non-cognitive skills on education and labor market outcomes," Labour Economics, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    polygenic scores; school resources; skill formation;
    All these keywords.

    JEL classification:

    • I29 - Health, Education, and Welfare - - Education - - - Other
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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