Intergeneration Transfer of Human Capital: Results from a Natural Experiment in Taiwan

35 Pages Posted: 14 Mar 2011

See all articles by Wehn-Jyuan Tsai

Wehn-Jyuan Tsai

affiliation not provided to SSRN

Jin‐Tan Liu

National Taiwan University - Department of Economics; National Bureau of Economic Research (NBER)

Shin-Yi Chou

Lehigh University - Department of Economics; National Bureau of Economic Research (NBER)

Michael Grossman

National Bureau of Economic Research (NBER), NY Office; CUNY The Graduate Center - Department of Economics

Date Written: March 2011

Abstract

We exploit a natural experiment to estimate the causal impact of parental education on educational outcomes of their children when they are high school seniors. In 1968, the Taiwanese government extended compulsory education from 6 to 9 years and opened over 150 new junior high schools at a differential rate among regions. We form treatment and control groups of women or men who were age 12 or under on the one hand and between the ages of 13 and 25 on the other hand in 1968. Within each region, we exploit variations across cohorts in new junior high school openings to construct an instrument for schooling. We employ this instrument to estimate the causal effects of mother's and father's schooling on their child's college entrance examination test scores in the years 2000-2003, on the probability that the child attended college and on the rank of the college attended. The schooling of each parent does cause their child to experience better educational outcomes. A one-year increase in the schooling of either parent raises the probability that the child attends one of the top six colleges in Taiwan by approximately 10 percent.

Suggested Citation

Tsai, Wehn-Jyuan and Liu, Jin-Tan and Chou, Shin-Yi and Grossman, Michael, Intergeneration Transfer of Human Capital: Results from a Natural Experiment in Taiwan (March 2011). NBER Working Paper No. w16876. Available at SSRN: https://ssrn.com/abstract=1784154

Wehn-Jyuan Tsai (Contact Author)

affiliation not provided to SSRN ( email )

Jin-Tan Liu

National Taiwan University - Department of Economics ( email )

21 Hsu-Chow Road
Taipei, 10020
Taiwan

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Shin-Yi Chou

Lehigh University - Department of Economics ( email )

620 Taylor Street
Bethlehem, PA 18015
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Michael Grossman

National Bureau of Economic Research (NBER), NY Office ( email )

5 Hanover Square
16th Floor, Suite 1602
New York, NY 10004-2630
United States
917-261-3127 (Phone)
917-426-7105 (Fax)

HOME PAGE: http://mgrossman.ws.gc.cuny.edu

CUNY The Graduate Center - Department of Economics ( email )

365 Fifth Avenue, 5th Floor
New York, NY 10016
United States
212-817-7959 (Phone)
212-817-1597 (Fax)

HOME PAGE: http://mgrossman.ws.gc.cuny.edu

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