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The causal effect of parents’ schooling on children’s schooling. A new instrumental variable approach using European data
We analyze the intergenerational transmission of human capital from parents to children. A novel instrumental variable approach is used to solve the endogeneity issue. We combine two instruments: parental birth order and Compulsory Schooling Laws (CSL). Our approach is novel: while CSL has been widely used in the literature, parental birth order is still unexplored. Combining two instruments with different characteristics we find a positive causal effect of parental education on children’s education. In line with previous studies, we find that mother's education causally affects children's education; we also find a positive and significant effect of father's education, differently from what the related literature suggests.
Enkelejda Havari is a post-doctoral scholar at the University of Ca' Foscari - Venice. She received a Ph.D from the University of Rome Tor Vergata in 2012, and a M.Sc from the University of Bologna in 2008. Her main research interests are in the fields of Economics of Education, Health Economics, and Applied Econometrics more generally.
IRVAPP/Fondazione Bruno Kessler - Via Santa Croce 77 - Trento