Parental Socioeconomic Status and Children's Cognitive Ability in China

45 Pages Posted: 24 Aug 2022

See all articles by Hui Xu

Hui Xu

Beijing Normal University

Zheyuan Zhang

Renmin University of China

Zhong Zhao

Institute for the Study of Labor (IZA); Renmin University of China

Abstract

It is widely recognized that intergenerational transmission is one of the primary causes of persistent social inequality. To what extent is a child’s cognitive development, which is highly related to their school performance and future labor market outcomes, impacted by their parents’ socioeconomic status? Using nationally representative data from the China Family Panel Studies (2010, 2014, and 2018), this paper is one of the first to provide a comprehensive investigation of parental SES and children’s cognitive outcomes in China. Our study moves beyond existing work by accounting for the direct intergenerational transmission of cognitive ability and by examining various novel mechanisms within the same framework. Our results show that parents’ education rather than income is positively associated with their children’s cognitive abilities. The analysis of mechanisms shows that educational disparity widens the gap in parental investment, as well as parental beliefs regarding education and expectations for their children. Nevertheless, we do not find differences in parenting productivity. In addition, we find that the impact is more prominent in rural areas where education resources are much more limited. Various tests have been performed to prove the robustness of our findings.

Keywords: Socioeconomic status, cognitive ability, parental investment, parenting productivity, beliefs

Suggested Citation

Xu, Hui and Zhang, Zheyuan and Zhao, Zhong, Parental Socioeconomic Status and Children's Cognitive Ability in China. Available at SSRN: https://ssrn.com/abstract=4198725 or http://dx.doi.org/10.2139/ssrn.4198725

Hui Xu

Beijing Normal University ( email )

No.19 Xinwai Str
Haidian District
Beijing, 100875
China

Zheyuan Zhang (Contact Author)

Renmin University of China ( email )

59# Zhongguancun Street
Haidian District
Beijing, Beijing 100872
China

Zhong Zhao

Institute for the Study of Labor (IZA) ( email )

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

Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

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