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Educational attainment and family background

Aakvik, Arild; Salvanes, Kjell Gunnar; Vaage, Kjell
Working paper
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URI
http://hdl.handle.net/11250/162694
Date
2005-04
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  • Discussion papers (SAM) [607]
Abstract
This paper analyses the effect of aspects of family background, such as family income

and parental education, on the educational attainment of persons born from 1967 to

1972. Family income is measured at different periods of a child’s life to separate longterm

versus short-term effects of family income on educational choices. We find that

permanent income matters to a certain degree, and that family income when the child is

0-6 years old is an important explanatory variable for educational attainment later in a

child’s life. We find that short-term credit constraints have only a small effect on

educational attainment. Long term factors, such as permanent family income and

parental education are much more important for educational attainment than are shortterm

credit constraints. Public interventions to alleviate the effects of family background

should thus also be targeted at a child's early years, the shaping period for the cognitive

and non-cognitive skills important later in life.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2005:10

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