Parental Investments and Socio-Economic Gradients in Learning across European Countries

Abstract

There is a widespread belief that strong public investments in children contribute to a levelled playing field and promote social mobility. Generous maternity leave, affordable daycare, extensive social safety nets, excellent universal health care, and high-quality public schools, are all notable features of Nordic countries. However, we document that gaps in learning outcomes between children of rich and poor parents remain as high in Nordic countries as elsewhere in Europe, using the PISA and PIAAC data. One explanation we uncover for this paradox is that parental investment by poor and rich parents, which is as unequal in Nordic countries as in the rest of Europe, is important to explain these learning gaps, despite public investments aimed at levelling the playing field.

Keywords: Inequality, Education, Human Capital, Intergenerational Transmission

JEL Classification: I24, J24, J62, D63