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Ethnic Capital and Intergenerational Transmission of Educational Attainment

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  • Postepska, Agnieszka

    (University of Groningen)

Abstract

This paper studies the role of ethnicity in the intergenerational transmission of educational attainment. Relying on heteroskedasticity to identify parameters in the presence of endogenous regressors, I revisit Borjas ethnic capital hypothesis. I find evidence that the OLS estimates of the effect of ethnic capital on intergenerational transmission of education are biased upwards due to the transfer of unobserved ability. I find that while the role of parental capital has declined over time, ethnic capital has a relatively constant effect on intergenerational transmission of educational attainment. I also find that only women benefit from the quality of the ethnic environment and that the intergenerational transfer of ethnic capital is most prevalent in communities with strong ties measured with endogamy rates.

Suggested Citation

  • Postepska, Agnieszka, 2017. "Ethnic Capital and Intergenerational Transmission of Educational Attainment," IZA Discussion Papers 10851, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10851
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    References listed on IDEAS

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    More about this item

    Keywords

    ethnic capital; human capital formation; intergenerational transmission;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • D1 - Microeconomics - - Household Behavior
    • Z1 - Other Special Topics - - Cultural Economics

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