Schooling, Family Background, and Adoption: Does Family Income Matter?

30 Pages Posted: 11 Apr 2001

See all articles by Erik Plug

Erik Plug

University of Amsterdam - Amsterdam School of Economics (ASE); Tinbergen Institute; IZA Institute of Labor Economics

Wim P.M. Vijverberg

CUNY The Graduate Center - Department of Economics; IZA Institute of Labor Economics

Date Written: January 2001

Abstract

One would expect that family income is an important positive factor in the school attainment of children. However, evidence on this relationship is often tainted by the lack of control for parental ability, since at least a portion of ability is transferred genetically to children. This paper considers empirical strategies that control for both observed and unobserved parental ability. In the end, family income still has a significant effect, which must therefore be causative. It implies that high-ability children in low-income families face binding credit constraints that society may wish to relieve.

Keywords: Intergenerational mobility, human capital, family income, adoption

JEL Classification: D31, I21, J13, J24

Suggested Citation

Plug, Erik and Vijverberg, Wim, Schooling, Family Background, and Adoption: Does Family Income Matter? (January 2001). IZA Discussion Paper No. 246. Available at SSRN: https://ssrn.com/abstract=265623

Erik Plug (Contact Author)

University of Amsterdam - Amsterdam School of Economics (ASE) ( email )

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Tinbergen Institute

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IZA Institute of Labor Economics

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Wim Vijverberg

CUNY The Graduate Center - Department of Economics ( email )

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New York, NY 10016
United States
212-817-8262 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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