
This issue is explored in detail in the review by Björklund and Salvanes ( 2011).Īn example of the importance of maternal education on child’s outcome is provided in Currie and Moretti ( 2003), who found a positive relationship between maternal education and their child’s birth weight, which is a strong predictor of child health. In particular, it has proven difficult to determine whether the transmission mechanism works through inherited genetic factors or environmental factors and, to the extent that it is the latter, what is the relative importance of parental education and income? Moreover, the link between the schooling of parents and their children could be due to unobserved inherited characteristics rather than a causal effect of parental education or income per se in household production. The nature of the policy interventions to address this inequity depends critically on the nature of the intergenerational transmission mechanism, and the extent to which the relationship is causal. Parents may affect the behavior and decisions taken by their children through genetic transmission, preferences, or/and environment – put simply, more educated and richer parents can provide a “better” environment for their children, which creates an inequity which is the focus of sizable policy attention (see for example McLachlan et al. A considerable literature has focused on the effects of parental background on outcomes for their children such as cognitive skills, education, health and subsequent income (for a review, see Black and Devereux ( 2011)).
