Working Paper: NBER ID: w16876
Authors: Wehnjyuan Tsai; Jintan Liu; Shinyi Chou; Michael Grossman
Abstract: We exploit a natural experiment to estimate the causal impact of parental education on educational outcomes of their children when they are high school seniors. In 1968, the Taiwanese government extended compulsory education from 6 to 9 years and opened over 150 new junior high schools at a differential rate among regions. We form treatment and control groups of women or men who were age 12 or under on the one hand and between the ages of 13 and 25 on the other hand in 1968. Within each region, we exploit variations across cohorts in new junior high school openings to construct an instrument for schooling. We employ this instrument to estimate the causal effects of mother's and father's schooling on their child's college entrance examination test scores in the years 2000-2003, on the probability that the child attended college and on the rank of the college attended. The schooling of each parent does cause their child to experience better educational outcomes. A one-year increase in the schooling of either parent raises the probability that the child attends one of the top six colleges in Taiwan by approximately 10 percent.
Keywords: Human Capital; Parental Education; Natural Experiment; Taiwan; Educational Outcomes
JEL Codes: I20; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Parental education (I24) | Children's educational outcomes (I21) |
| Mother's schooling (I21) | Children's educational outcomes (I21) |
| Father's schooling (I29) | Children's educational outcomes (I21) |
| Parental education (I24) | College entrance examination scores (I23) |