Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35466
Authors: 
Farré, Lídia
Klein, Roger
Vella, Francis
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 3967
Abstract: 
This paper investigates the degree of intergenerational transmission of education for individuals from the National Longitudinal Survey of Youth 1979. Rather than identifying the causal effect of parental education via instrumental variables we exploit the feature of the transmission mechanism responsible for its endogeneity. More explicitly, we assume the intergenerational transfer of unobserved ability is invariant to the economic environment. This, combined with the heteroskedasticity resulting from the interaction of unobserved ability with socioeconomic factors, identifies this causal effect. We conclude the observed intergenerational educational correlation reflects both a causal parental educational effect and a transfer of unobserved ability.
Subjects: 
Intergenerational mobility
endogeneity
conditional correlation
JEL: 
C31
J62
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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