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Education and intergenerational mobility: evidence from a natural experiment in Puerto Rico

Bluedorn, John and Cascio, Elizabeth U. (2005) Education and intergenerational mobility: evidence from a natural experiment in Puerto Rico , Oxford, UK University of Oxford (Nuffield College Economics Paper, 2005-W21).

Record type: Monograph (Working Paper)

Abstract

The existence of intergenerational spillovers to public investments in schooling is often assumed in policy discussions regarding economic development. However, few studies to date have forwarded convincing evidence that externalities exist for developing countries. In this paper, we address this issue using the arguably exogenous schooling consequences of a major hurricane strike on Puerto Rico in the 1950s. Using data from the U.S. Census of Population for Puerto Rico, we first find that individuals on the margin of school entry at the time of the storm and residing in the most exposed regions of the island had significantly lower levels of education as adults than their counterparts in less exposed regions. Using the interaction of wind speed and age at the time of the storm as an instrument, we then find that maternal education is related to the probability that a child speaks English. Our estimates imply an additional year of education raises the probability that a child speaks English by between 4.3 and 4.5 percentage points, or approximately 24 to 28 percent. We find no conclusive evidence that parental education increases the probability that a child is enrolled, literate, or in an age-appropriate grade. On balance, these findings suggest that education is responsible at least in part for the persistence of human capital across generations.

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More information

Published date: 2005
Keywords: education, intergenerational mobility, natural experiment, hurricane

Identifiers

Local EPrints ID: 42753
URI: http://eprints.soton.ac.uk/id/eprint/42753
PURE UUID: 3e3deb01-b318-482b-94cc-e5ab85243170

Catalogue record

Date deposited: 01 Feb 2007
Last modified: 17 Jul 2017 15:21

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Contributors

Author: John Bluedorn
Author: Elizabeth U. Cascio

University divisions

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