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Educational Attainment and Family Background

Author

Listed:
  • Arild Aakvik
  • Kjell G. Salvanes
  • Kjell Vaage
Abstract
. This paper analyses the effect of aspects of family background, such as family income and parental education, on the educational attainment of persons born from 1967 to 1972. Family income is measured at different periods of a child's life to separate long‐term versus short‐term effects of family income on educational choices. We find that permanent income matters to a certain degree, and that family income when the child is 0–6 years old is an important explanatory variable for educational attainment later in a child's life. We find that short‐term credit constraints have only a small effect on educational attainment. Long‐term factors, such as permanent family income and parental education, are much more important for educational attainment than are short‐term credit constraints. Public interventions to alleviate the effects of family background should thus also be targeted at a child's early years, the shaping period for the cognitive and non‐cognitive skills important later in life.

Suggested Citation

  • Arild Aakvik & Kjell G. Salvanes & Kjell Vaage, 2005. "Educational Attainment and Family Background," German Economic Review, Verein für Socialpolitik, vol. 6(3), pages 377-394, August.
    • Handle: RePEc:bla:germec:v:6:y:2005:i:3:p:377-394
    DOI: 10.1111/j.1468-0475.2005.00138.x
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    6. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute of Labor Economics (IZA).
    7. 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.
    8. Raaum, Oddbjørn & Salvanes, Kjell G. & Sørensen, Erik Ø., 2003. "The Impact of a Primary School Reform on Educational Stratification: A Norwegian Study of Neighbour and School Mate Correlations," IZA Discussion Papers 953, Institute of Labor Economics (IZA).
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    Cited by:

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    2. Abdulmumini Baba Alfa & Abdulmumini Baba Alfa & Mohd Zaini Abd Karim, 2016. "Student Enthusiasm as a Key Determinant of their Performance," International Review of Management and Marketing, Econjournals, vol. 6(2), pages 237-245.
    3. Elizabeth M. Caucutt & Lance Lochner, 2020. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 1065-1147.
    4. Katja Seidel, 2021. "The transition from School to Post-Secondary Education – What factors affect educational decisions?," Working Paper Series in Economics 398, University of Lüneburg, Institute of Economics.
    5. repec:bla:germec:v:11:y:2010:i::p:150-168 is not listed on IDEAS
    6. Maria Humlum, 2011. "Timing of family income, borrowing constraints, and child achievement," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(3), pages 979-1004, July.
    7. Karin Monstad & Carol Propper & Kjell G. Salvanes, 2011. "Is teenage motherhood contagious? Evidence from a Natural Experiment," The Centre for Market and Public Organisation 11/262, The Centre for Market and Public Organisation, University of Bristol, UK.
    8. Martin Ryan & Siobhan McCarthy & Carol Newman, 2007. "Household Characteristics of Higher Education Participants," Working Papers 200702, Geary Institute, University College Dublin.
    9. Mantello, Peter & Ho, Tung Manh & Nguyen, Minh-Hoang & Vuong, Quan-Hoang, 2021. "My Boss the Computer: A Bayesian analysis of socio-demographic and cross-cultural determinants of attitude toward the Non-Human Resource Management," OSF Preprints 4exjs, Center for Open Science.
    10. Raaum Oddbjørn & Bratsberg Bernt & Røed Knut & Österbacka Eva & Eriksson Tor & Jäntti Markus & Naylor Robin A, 2008. "Marital Sorting, Household Labor Supply, and Intergenerational Earnings Mobility across Countries," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-49, January.
    11. Jakobsen, Kristian Thor & Kaarsen, Nicolai & Vasiljeva, Kristine, 2016. "Does reduced cash beneit worsen educational outcomes of refugee children?," MPRA Paper 72008, University Library of Munich, Germany.
    12. Pedro Carneiro & Italo López García & Kjell G. Salvanes & Emma Tominey, 2021. "Intergenerational Mobility and the Timing of Parental Income," Journal of Political Economy, University of Chicago Press, vol. 129(3), pages 757-788.
    13. F. Cugnata & G. Perucca & S. Salini, 2017. "Bayesian networks and the assessment of universities' value added," Journal of Applied Statistics, Taylor & Francis Journals, vol. 44(10), pages 1785-1806, July.
    14. Dormidontova, Yulia (Дормидонтова, Юлия) & Kazakova, Yuliya (Казакова, Юлия) & Lyashok, Victor (Ляшок, Виктор) & Grishina, E. (Гришина, Е.) & Tsatsura, Elena (Цацура, Елена), 2016. "Analysis of the Effectiveness of Social Support for Families with Children in Russia: The Example of the Altai Territory and Samara Region [Анализ Эффективности Социальной Поддержки Семей С Детьми ," Working Papers 3134, Russian Presidential Academy of National Economy and Public Administration.
    15. Le, Minh Hanh & Afsharian, Mohsen & Ahn, Heinz, 2021. "Inverse Frontier-based Benchmarking for Investigating the Efficiency and Achieving the Targets in the Vietnamese Education System," Omega, Elsevier, vol. 103(C).
    16. Iddrisu, Abdul Malik & Danquah, Michael & Quartey, Peter & Ohemeng, Williams, 2018. "Gender bias in households’ educational expenditures: Does the stage of schooling matter?," World Development Perspectives, Elsevier, vol. 10, pages 15-23.
    17. Lars Lefgren & Matthew J. Lindquist & David Sims, 2012. "Rich Dad, Smart Dad: Decomposing the Intergenerational Transmission of Income," Journal of Political Economy, University of Chicago Press, vol. 120(2), pages 268-303.
    18. Beraldo, Sergio & Montolio, Daniel & Turati, Gilberto, 2009. "Healthy, educated and wealthy: A primer on the impact of public and private welfare expenditures on economic growth," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(6), pages 946-956, December.
    19. Ritzen, Jo, 2011. "A renaissance for social mobility and its significance for the bridge towards postsecondary education," MERIT Working Papers 2011-057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    20. Løken, Katrine V., 2010. "Family income and children's education: Using the Norwegian oil boom as a natural experiment," Labour Economics, Elsevier, vol. 17(1), pages 118-129, January.
    21. Minagawa Junichi & Upmann Thorsten, 2014. "A Single Parent’s Labor Supply: Evaluating Different Child Care Fees within an Intertemporal Framework," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 14(1), pages 177-215, January.

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    More about this item

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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