Estimates of the Effect of Parents' Schooling on Children's Schooling Using Censored and Uncensored Samples

19 Pages Posted: 26 Nov 2006

See all articles by Erik Plug

Erik Plug

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

Monique de Haan

affiliation not provided to SSRN

Date Written: November 2006

Abstract

In this paper we estimate the impact of parental schooling on child schooling, focus on the problem that children who are still in school constitute censored observations, and evaluate three solutions to it: maximum likelihood approach, replacement of observed with expected years of schooling, and elimination of all school-aged children. Plug (2004) - a recent mobility study that relies on censored data - serves as an illustration. With updated and uncensored versions of previous samples, we re-examine Plug's estimates and test how the three correction methods deal with censored observations. The one that treats parental expectations as if they were realizations seems to fix the censoring problem quite well.

Keywords: intergenerational mobility of education, censored observations

JEL Classification: I2, J62, C34

Suggested Citation

Plug, Erik and de Haan, Monique, Estimates of the Effect of Parents' Schooling on Children's Schooling Using Censored and Uncensored Samples (November 2006). IZA Discussion Paper No. 2416. Available at SSRN: https://ssrn.com/abstract=947060

Erik Plug (Contact Author)

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

Roetersstraat 11
1018 WB Amsterdam
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+31 20 5254311 (Phone)
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Tinbergen Institute

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Rotterdam, 3062 PA
Netherlands

IZA Institute of Labor Economics

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

Monique De Haan

affiliation not provided to SSRN ( email )

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