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Causal effects of Parent's Education on Children's Education: Klein and Vella (2009) Approach

Causal effects of Parent's Education on Children's Education: Klein and Vella (2009) Approach

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This paper presents evidence on intergenerational educational and occupational mobility in Rural China over a period of 14 years (1988-2002). To understand whether the estimated intergenerational persistence can be driven solely by unobserved heterogeneity, we implement biprobit sensitivity analysis (Altonji et al. (2005)) and heteroskedasticity ba...

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In this study, we examine the “geography of mobility” for rural India. We study the spatial determinants of intergenerational occupational mobility across villages in India. Using a nationally representative data set—the Indian Human Development Survey of 2011–2012, which has detailed information on the occupations of fathers and sons as well as da...

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... A stronger intergenerational persistence implies a lower intergenerational mobility. For recent contributions on intergenerational mobility in China, see, among others, Fan et al. (2021); Park and Zou (2019); Sato and Li (2007); Emran and Sun (2015a); Emran et al. (2020b); on India see, among others, Azam and Bhatt (2015); Emran and Shilpi (2015); Asher et al. (2018); Ahsan et al. (2022); Emran et al. (2021). For cross-country analysis, see Behrman (2019); Hertz et al. (2007), and Neidhofer et al. (2018), among others. ...
... They identify the geographic restrictions on mobility of rural people because of the Hukou registration system as the primary factor behind this weak intergenerational persistence in nonfarm occupations. 45 Using CHIP 2002 data, Emran and Sun (2015a) report evidence supporting (Wu and Treiman 2007) finding. ...
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We extend the Becker-Tomes model to a rural economy with farm-nonfarm occupational dualism to study intergenerational educational mobility in rural China and India. Using data free of coresidency bias, we find that fathers’ nonfarm occupation and education were complementary in determining sons schooling in India, but separable in China. Sons faced lower mobility in India irrespective of fathers’ occupation. Sensitivity analysis using the Altonji et al. (J. Polit. Econ. 113(1), 151–84, 2005) approach suggests that genetic correlations alone could explain the intergenerational persistence in China, but not in India. Farm-nonfarm differences in returns to education, and geographic mobility are plausible mechanisms behind the contrasting cross-country evidence.
... The literature does not seem to have a consensus on this issue. Some findings show that at both end of education level intergenerational mobility has been persistently low while others find that in developing countries children of highly educated parents are more likely to gain from parental education (Emran and Sun, 2015;Torche, 2016Torche, , 2019. ...
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During the Chinese Cultural Revolution of 1966-1976 city schools and universities were closed for many years. As a result, a large number of people from the relevant cohorts missed 1-8 years of schooling. We find that this large-scale schooling interruption has a strong negative effect on childrens educational attainment, and this effect is mainly through parental education rather than other channels. Using the education interruption as the instrument in an IV estimation, we find that one-year reduction of parental education because of the school interruptions during the CR reduced their childrens education level by 0.32 years and the probability of obtain a university degree by 4.1 percentage points or an 18% reduction relative to the average of the childrens generation. As human capital accumulation is one of the main drivers of economic development, these negative schooling shocks will have a long-term impact on economic development via intergenerational education transmission.
... For developing countries the empirical evidence for the gender gap in intergenerational education mobility are even scantier. To the best of my knowledge, all the cases are limited to the works of Dacuycuy and Bayudan-Dacuycuy (2019) and Estudillo, Quisumbing, and Otsuka (2001) for Philippines, Azomahou and Yitbarek (2016) for sub-Sahara Africa, Emran and Shilpi (2015) for India, Emran and Sun (2015) for China, and Thomas (1996) for South Africa. A detailed analysis of these papers revealed a mixed picture in relation to the gender gap. ...
... A detailed analysis of these papers revealed a mixed picture in relation to the gender gap. While some authors have indicated that the intergenerational persistence in education is higher for daughters than for sons (see Azomahou & Yitbarek, 2016;Emran & Shilpi, 2015;Emran & Sun, 2015;Thomas, 1996), other papers have confirmed a higher mobility for women (see Dacuycuy & Bayudan-Dacuycuy, 2019;Emran & Sun, 2015). ...
... A detailed analysis of these papers revealed a mixed picture in relation to the gender gap. While some authors have indicated that the intergenerational persistence in education is higher for daughters than for sons (see Azomahou & Yitbarek, 2016;Emran & Shilpi, 2015;Emran & Sun, 2015;Thomas, 1996), other papers have confirmed a higher mobility for women (see Dacuycuy & Bayudan-Dacuycuy, 2019;Emran & Sun, 2015). ...
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This paper employs mobility matrices, univariate regressions and multivariate econometric techniques based on the recently published Brazilian National Household Sampling Survey to investigate the relevance of the gendered patterns in the intergenerational transmission of educational attainment. The empirical evidence from these three different approaches is absolutely unanimous: In Brazil there is a significant variation in degree of mobility across genders, with a higher mobility level for daughters than for sons. The reason for this gender gap in mobility lies in the chances of attaining the educational levels: regardless of the educational background of the parents, females have a lower chance of remaining without school certificate and a greater probability to achieve a tertiary education. This study has demonstrated also that the educational attainment of children is strongly associated with the education of their most educated parent, regardless of their gender and this correlation is higher for female than for male.
... Breen et al. (2016) concluded that China may be a similar contradictory case and has a very high intergenerational elasticity of income, yet high class fluidity. Second, in the research on the trends in mobility, sociologists concluded that China became a more "mobile" society after the year 2000 (Chen 2013;Li and Zhu 2015;Emran and Sun 2011;Zhou and Xie 2015), but some economists drew a different conclusion and claimed that there was a declining trend in intergenerational income mobility at about the same time (Yuan and Lin 2013;Fan et al. 2013). ...
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Intergenerational social mobility has been of interest to economists and sociologists in recent years. However, with the development of methodologies and applications, it has been found that studying income mobility and class mobility separately often led to some conflicting findings. The class mobility and income mobility of China, a major developing country, has attracted the widespread interest of economists and sociologists from around the world. In this article, we attempt to answer the following questions: Should these divergent findings of intergenerational income and class mobility be regarded as a result of the differing data problems faced by researchers seeking to investigate income and class mobility or as a result of their differing analytical approaches? Is there a significant difference between intergenerational class mobility and income mobility in China? Our own comparative analysis involves measuring the magnitudes and temporal trends of intergenerational class mobility and income mobility. By using China Health and Nutrition Survey data, this paper explicitly tests the differences in the intergenerational associations of the income table and the class table from the “local”, “global”, and “comprehensive” perspectives, and provides smooth estimates of trends of both social class mobility and income mobility. This empirical study demonstrates that there is strong evidence showing that China’s class mobility and income mobility are not consistent in both fluidity levels and trend changes using the same data and same analytical approaches. Furthermore, there is a stronger association between fathers’ class and children’s class than between fathers’ income and children’s income, and the temporal trend of class mobility is more volatile than that of income mobility. This leads us to suggest that, in China, class may in general be a better indicator of socioeconomic status than one-shot measures of current income.
... The recent studies on India include Azam and Bhatt (2015), Azam (2016), Emran and Shilpi (2015), Asher et al. (2018), Maitra and Sharma (2010), and Ahsan and Chatterjee (2017). On intergenerational mobility in China, see, among others, Fan et al. (2019), Golley and Kong (2013), Emran and Sun (2015), Gong et al. (2012), Park and Zou (2017), and Knight et al. (2011). Most of the studies on India and China focus on intergenerational schooling persistence based on a linear CEF, but none of them derive the estimating equation from theory. ...
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We incorporate gender bias against girls in the family, the school and the labor market in a model of intergenerational persistence in schooling where parents self-finance children's education because of credit market imperfections. Parents may underestimate a girl's ability, expect lower returns, and assign lower weights to their welfare ("pure son preference"). The model delivers the widely-used linear conditional expectation function (CEF) under constant returns and separabil-ity, but generates an irrelevance theorem: parental bias does not affect relative mobility. With diminishing returns and complementarity, the CEF can be concave or convex, and gender bias affects both relative and absolute mobility. We test these predictions in India and China using data not subject to coresidency bias. The evidence rejects the linear CEF, both in rural and urban India, in favor of a concave relation. The girls face lower mobility irrespective of location in India when born to fathers with low schooling, but the gender gap closes when the fathers are college educated. In China, the CEF is convex for sons in urban areas, but linear in all other cases. The convexity for urban sons supports the complementarity hypothesis of Becker et al. (2018), and leads to gender divergence in relative mobility for the children of highly educated fathers. In urban China, and urban and rural India, the mechanisms are underestimation of ability of girls and unfavorable school environment. There is some evidence of pure son preference in rural India. The girls in rural China do not face bias in financial investment by parents, but they still face lower mobility when born to uneducated parents. The mechanism is constraints in rural schools, with no convincing evidence of parental bias.
... There is also a limited literature on mother-daughter mobility which shows a stronger intergenerational educational association among women than men (for India, see Emran and Shilpi 2015; for China, see Emran and Sun 2015; for nine Sub-Saharan African countries, see Azomahou and Yitbarek 2016; for Brazil, see Leone 2017; for 18 Latin American countries, see Neidhöfer et al. 2019). A similar finding is obtained for occupational mobility by Emran and Shilpi (2019). ...
... There is substantial evidence that structural change in favor of non-farm occupation is an important source of increasing income inequality in villages of many developing countries. 4 According to the estimates of Lanjouw et al. (2013) based on the data from Palanpur in the Indian state of Uttar Pradesh, the contribution of non-farm income to over-all income 2 For recent contributions on China, see, among others, Fan et al. (2015), Park and Zou (2018), Sato and Li (2007), Emran and Sun (2015a)), on India see, among others, Azam and Bhatt (2015), Emran and Shilpi (2015), Asher et al. (2018), Ahsan et al. (2019). For cross-country analysis, see Behrman (2000), Hertz et al. (2007), and Neidhofer et al. (2018), among others. ...
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We extend the Becker-Tomes (1986) model of intergenerational educational mobility to a rural economy characterized by occupational dualism (farm vs. nonfarm) and provide a comparative analysis of rural India and rural China. Using two exceptional data-sets, we estimate father-sons intergenerational educational persistence in farm and nonfarm households free of truncation bias due to coresidency. The sons in rural India faced lower educational mobility compared to the sons in rural China in the 1990s and earlier. Father's nonfarm occupation and education were complementary in determining a son's schooling in India, but separable in China. However, the separability observed for the older cohorts in rural China broke down for the younger cohort. Evidence from supplementary data on economic mechanisms shows that the extended Becker-Tomes model provides plausible explanations for both the crosscountry heterogeneity (India vs. China), and the evolution of mobility across cohorts in China.
... Cheng/Wu 2015;Kanbur/Zhang 2009). Educational opportunities such as access to higher education have also expanded rapidly over the past 20 years, meaning that educational inequalities within and between generations is an ingrained feature of modern Chinese families (Emran/Sun 2011). In addition, the mass migration of individuals from rural to urban areas, particularly amongst younger generations, has led to increasing proportions of aging parents who are separated from their adult children (Cong/Silverstein 2011;Connelly/Maurer-Fazio 2015;Guo/Chi/Silverstein 2012). ...
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This paper examines how parent-child relationships vary against the backdrop of socio-economic inequalities evident in China. China is both an increasingly unequal and rapidly ageing country. Understanding how the relationships that older Chinese have with their children are associated with social inequalities is therefore of paramount importance. We do this by examining the effect of socio-economic indicators of the parent and child on their relationship in a multilevel, multinomial logit model of parentchild dyads using data from the Chinese Family Panel Study. First, the relationships we observe are not unidimensional and display complex patterns which deviate heavily from a ‘strong versus weak’ description of family ties. The results do not support a family displacement perspective of parent-child relationships but instead suggest that educational and financial resources facilitate support that is associated with greater emotional closeness and negates the need for support which places an emotional strain on the parent-child relationship. Zusammenfassung In diesem Artikel wird untersucht, wie die Eltern-Kind-Beziehungen vor dem Hintergrund sozialökonomischer Ungleichheiten, die in China evident sind, variieren. China ist gleichermaßen ein zunehmend von Ungleichheiten geprägtes wie ein rasch alterndes Land. Es ist daher von überragender Bedeutung zu verstehen, inwieweit die Beziehungen älterer Chinesen zu ihren Kindern mit sozioökonomischen Ungleichheiten assoziiert sind. Wir widmen uns dieser Frage, indem wir den Effekt sozialökonomischer Indikatoren für Eltern und Kinder auf deren Beziehung in einem multinominalen logistischen Mehrebenenmodell unter Verwendung von Daten der Chinese Family Panel Study für Eltern-Kind-Dyaden untersuchen. Die von uns beobachteten Beziehungen sind jedoch nicht eindimensional, sondern weisen komplexe Muster auf, die stark von einer „stark versus schwach“-Beschreibung der Familienbeziehungen abweichen. Die Ergebnisse stützen die Perspektive der Ablösung von der Familie in den Eltern-Kind-Beziehungen nicht, sondern legen stattdessen nahe, dass vorhandene Bildungs- und finanzielle Ressourcen eine Unterstützung erleichtern, die mit größerer emotionaler Nähe assoziiert ist und die Notwendigkeit solcher Unterstützung negieren, die der Eltern-Kind-Beziehung eine emotionalen Belastung auferlegen.
... With respect to transmission mechanisms, the role of education has been widely examined [Guo and Min (2008), Emran and Sun (2015), Gong et al. (2012)]. According to Golley and Kong (2013), the difference of intergenerational transmission persistence of education between urban and rural China can aggravate rural-urban disparity in China. ...
Article
Studies show that the gain from China's remarkable growth of the past 35 years has not been evenly shared, especially through the intergenerational transmission of income. To address this concern, we use data from China Health and Nutrition Survey and find the intergenerational income elasticity to be 0.466 in 2011, which suggests that sons’ incomes are affected by their fathers’ economic statuses to a large extent. A cross-country comparison indicates that the degree of generational income mobility in China is lower than that in many developed nations. Meanwhile, by investigating possible transmission channels, we find that the fathers’ investments in the sons’ education and occupation play substantial roles in intergenerational transmission of income. The results not only demonstrate the trends in intergenerational income mobility in China, but also identify the most likely transmission channels, which is of great importance to improving social equality.
... The frequency of row indicates educational attainment of one generation and frequencies of column indicate another generation (Naidu, 2004;Aydemir et al., 2008;Motiram and Singh, 2012). From these mobility tables, the changes in educational attainment have been compared and examined, cell by cell taking into consideration two generations at a time (Emran and Sun, 2011). As the educational categories are arranged in the same order of rows and columns the diagonal cell indicates the degree of immobility means the educational attainment between two generations are same which also known as horizontal mobility. ...