Working Paper: NBER ID: w31186
Authors: Eric A. Hanushek; Babs Jacobs; Guido Schwerdt; Rolf van der Velden; Stan Vermeulen; Simon Wiederhold
Abstract: The standard economic model of occupational choice following a basic Roy model emphasizes individual selection and comparative advantage, but the sources of comparative advantage are not well understood. We employ a unique combination of Dutch survey and registry data that links math and language skills across generations and permits analysis of the intergenerational transmission of comparative skill advantages. Exploiting within-family between-subject variation in skills, we show that comparative advantages in math of parents are significantly linked to those of their children. A causal interpretation follows from a novel IV estimation that isolates variation in parent skill advantages due to their teacher and classroom peer quality. Finally, we show the strong influence of family skill transmission on children’s choices of STEM fields.
Keywords: STEM education; comparative advantage; intergenerational transmission; cognitive skills
JEL Codes: I24; I26; J12; J62
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Parental comparative advantages in math skills (D29) | Children's comparative advantages in math skills (D29) |
| Parental comparative advantages in math skills (D29) | Children's pursuit of STEM fields (I21) |
| Educational interventions (I24) | Transmission of comparative skill advantages (F16) |