Unequal transitions: Selection bias and the compensatory effect of social background in educational careers

Previous studies have shown that social background inequality differs among educational transitions and it is stronger for those transitions that involve a higher risk of social demotion. This paper focuses on two processes that may account for part of the observed differences in social background inequality across educational transitions. First, it studies how the family of origin might compensate for a ‘false step’ in the early stage of young people's educational careers. This compensatory effect of social background can be described as the likelihood of having ‘a second chance’ for unsuccessful educational transitions. Second, it focuses on two unobserved factors that might potentially bias the effect of social background across educational transitions. These are the students’ unobserved cognitive and non-cognitive skills and their unobserved anticipated choices of dropping out of the education system. Two issues – the compensatory effect of social background and selection bias in educational transitions – are addressed by estimating a probit model with sample selection for the transition to post-compulsory education in Spain.     

Dealing with selection bias in educational transition models: The bivariate probit selection model

This paper proposes the bivariate probit selection model (BPSM) as an alternative to the traditional Mare model for analyzing educational transitions. The BPSM accounts for selection on unobserved variables by allowing for unobserved variables which affect the probability of making educational transitions to be correlated across transitions. We use simulated and real data to illustrate how the BPSM improves on the traditional Mare model in terms of correcting for selection bias and providing credible estimates of the effect of family background on educational success. We conclude that models which account for selection on unobserved variables and high-quality data are both required in order to estimate credible educational transition models.     

Accounting for dynamic selection bias in educational transitions: The Cameron-Heckman latent class estimator and its generalizations

The sequential logit model of educational transitions has long been the dominant modeling framework for the study of inequality of educational opportunity ever since the seminal works of [Mare, 1980] and [Mare, 1981]. But conventional applications of the model are known to be biased by the ubiquitous presence of unobserved heterogeneity. Cameron and Heckman (1998) propose a logit model that allows for two or three latent classes if the selection bias is solely generated by a person-specific component of stable unobserved heterogeneity. To evaluate the latent class logit regression estimator, this study makes use of simulated data to eliminate the influences of other problems of transition modeling. The simulation is based on five independent pairs of large samples generated from standard distributional assumptions of transition modeling. The new estimator appears to be an effective way to adjust for dynamic selection bias when family background effects are transition-invariant and sample size is in the order of ten thousand or above. By contrast, the conventional sequential logit model produces results that are very different from the data generating models. This study also considers two alternative ways to improve statistical efficiency: (1) incorporate a crude indicator of stable unobserved heterogeneity; (2) pool the effect estimates across transitions, background variables, and alternative estimators to smooth out noise under the null hypothesis of transition invariance. In addition, this study examines the impact of indicator reliability and sample size on the performance of the latent class regression models and suggests practical guidelines.     

The consequences of unobserved heterogeneity in a sequential logit model

Cameron and Heckman (1998) established that a sequential logit model is more sensitive than many other models to the possible biasing influence of unobserved heterogeneity. This article proposes a method which allows researchers to find out how large this potential problem is for their data, their model, and their hypothesis of interest. This is done by proposing a set of scenarios for this unobserved heterogeneity, and showing how to estimate the effects of interest given these scenarios. The set of results from these scenarios give an indication of how sensitive the results are to assumptions regarding unobserved heterogeneity. This sensitivity analysis has been applied to a study of educational attainment in the Netherlands, and it showed that that the finding that the effect of father's education declined over transitions is quite sensitive to the assumptions made about unobserved heterogeneity, but that the finding that the effect of father's education declined over birth cohorts is more robust than is often feared.     

Sibship size and educational attainment. A joint test of the Confluence Model and the Resource Dilution Hypothesis

Studies on family background often explain the negative effect of sibship size on educational attainment by one of two theories: the Confluence Model (CM) or the Resource Dilution Hypothesis (RDH). However, as both theories - for substantively different reasons - predict that sibship size should have a negative effect on educational attainment most studies cannot distinguish empirically between the CM and the RDH. In this paper, I use the different theoretical predictions in the CM and RDH on the role of cognitive ability as a partial or complete mediator of the effect of sibship size to distinguish the two theories and to identify a unique RDH effect on educational attainment. Using sibling data from the Wisconsin Longitudinal Study (WLS) and a random effect Instrumental Variable model I find that, in addition to a negative effect on cognitive ability, sibship size also has a strong negative effect on educational attainment which is uniquely explained by the RDH.     

Do all roads lead to Rome? Effect of educational trajectories on educational transitions

“Non-traditional” educational trajectories are increasingly common among American students. This study assesses the implications of this phenomenon for inequality in educational attainment. A proper account of educational trajectories requires simultaneous consideration of qualitatively different types of destinations within educational transitions, of the timing at which different transitions occur, and of the sequence of events within educational levels. To examine “traditional” and “non-traditional” pathways through post-secondary education, this study relies on detailed educational histories from the National Longitudinal Survey of Youth 1979–2002. Findings reveal that deviations from a traditional trajectory are widespread, are more frequent among students who enrolled in less selective colleges, and also among socioeconomically and academically disadvantaged students. Results show that following a “non-traditional” pathway reduces students’ chances to enroll in college and to complete a post-secondary degree. In the case of bachelor's degree completion, most of the observed gap among students from different socioeconomic backgrounds is accounted for the different trajectories students follow. This study demonstrates that a fine-grained analysis of students’ trajectories improves our understanding of the persistent socioeconomic disparities in educational attainment.     

The impact of family structure transitions on youth achievement: Evidence from the children of the NlSY79

We investigated the sensitivity of measures of cognitive ability and socioemotional development to changes in parents' marital status using data from the National Longitudinal Survey of Youth, 1979. We used several scores for each assessment, taken at different times relative to parents' marital transitions, which allowed us to trace the effects starting up to five years before a parent's change in marital status and continuing for up to six years afterward. It also allowed us to correct for the unobserved heterogeneity of the transition and nontransition samples by controlling for the child's fixed effect in estimating the time path of his or her response to the transition. We found that children from families with both biological parents scored significantly better on the BPI and the PIAT-math and PIAT-reading assessments than did children from nonintact families. However, much of the difference disappeared when we controlled for background variables. Furthermore, when we controlled for child fixed effects, we did not find significant longitudinal variation in these scores over long periods that encompass the marital transition. This finding suggests that most of the variation is due to cross-sectional differences and is not a result of marital transitions per se.     

Economic transition,school expansion and educational inequality in China, 1990–2000

This paper examines the trends in educational stratification during China's economic reforms in the 1990s. Based on the sample data of population censuses in 1990 and 2000, school-age children were matched to their parents’ background information, and the effects of family background on their school enrollment and continuation were investigated. Results show that despite the substantial expansion of educational opportunities in the decade, family background continues to play an important role in determining school enrollment status and school transitions. During the decade, children of rural-hukou status became more disadvantaged compared to their urban counterparts, and the effect of their father's socioeconomic status on school enrollment was enhanced. Despite the fact that children of rural-hukou status gained relatively more opportunities at junior high school level, as a result of nationwide saturation at the 9-year compulsory education, the rural–urban gap in the likelihood of transition to senior high school level enlarged, and the effect of their father's socioeconomic status increased—even after controlling for regional variations in economic development.     

Gender, migration, and career trajectories in Malaysia

With data from the Malaysian Family Life Survey, I use a continuous-state hazards model to study the impact of migration on the dynamics of individuals’ careers. I distinguish between the effects of family migration and solo migration by gender. The results show that migration alters the career trajectory primarily by accelerating the process of occupational mobility rather than by increasing the level of occupational attainment. Further, the effect of migration on careers varies by type of migration, especially for women. Male-female differences in the outcome of family migration, however, are visible only in transitions into and out of employment.     

What Explains the Rural-Urban Gap in Infant Mortality: Household or Community Characteristics?

The rural-urban gap in infant mortality rates is explained by using a new decomposition method that permits identification of the contribution of unobserved heterogeneity at the household and the community level. Using Demographic and Health Survey data for six Francophone countries in Central and West sub-Saharan Africa, we find that differences in the distributions of factors that determine mortality-not differences in their effects-explain almost the entire gap. Higher infant mortality rates in rural areas mainly derive from the rural disadvantage in household characteristics, both observed and unobserved, which explain two-thirds of the gap. Among the observed characteristics, environmental factors-a safe source of drinking water, electricity, and quality of housing materials-are the most important contributors. Community characteristics explain less than onequarter of the gap, with about two-thirds of this coming from community unobserved heterogeneity and one-third from the existence of a health facility within the community. The effect of disadvantageous environmental conditions-such as limited electricity and water supply-derives both from a lack of community-level infrastructure and from the inability of some households to exploit it when available. Policy needs to operate at both the community and household levels to correct such deficiencies.     

Family structure and child outcomes in the USA and Sweden

Previous research shows that living in a non-intact family is associated with educational disadvantages. This paper compares the relationships between childhood family structure, schooling, and earnings in Sweden and the USA. This comparison is interesting because both family structure and public policies differ significantly. We find a negative relationship between living in a non-intact family and child outcomes, and the estimates are remarkably similar in both countries. After using sibling-difference models, the correlation with family structure is no longer significant. These results cast doubt on the causal interpretation of the negative relationship between non-intact family structures and child outcomes.     

Interrelationships Between Childbearing and Housing Transitions in the Family Life Course

Research has examined the effect of family changes on housing transitions and childbearing patterns within various housing types. Although most research has investigated how an event in one domain of family life depends on the current state in another domain, the interplay between them has been little studied. This study examines the interrelationships between childbearing decisions and housing transitions. We use rich longitudinal register data from Finland and apply multilevel event history analysis to allow for multiple births and housing changes over the life course. We investigate the timing of fertility decisions and housing choices with respect to each other. We model childbearing and housing transitions jointly to control for time-invariant unobserved characteristics of women, which may simultaneously influence their fertility behavior and housing choices, and we show how joint modeling leads to a deeper understanding of the interplay between the two domains of family life.     

Structural Change in Life Cycle Fertility During the Fertility Transition: France Before and After the Revolution of 1789

This paper explores the hypothesis that the fertility transition in France entailed a structural change in behaviour from natural to controlled fertility. We define the hypothesis in terms of an empirically estimable model of lifetime fertility. The model produces separate estimates of the three main proximate determinants: the hazard rate of conception for ovulating women, the timing of ovulation resumption after a birth, and permanent sterility. Fertility control is defined as responsiveness of the conception hazard to number of surviving children. We demonstrate key features of the model by simulated family histories. The historical application provides support for the transition hypothesis in the south of France, and mixed results for the north. We also find strong evidence of persistent couple-specific heterogeneity even after controlling for unobserved heterogeneity in fecundability. We suggest how future research might improve the model.     

Extracting the causal component from the intergenerational correlation in unemployment

This paper examines the intergenerational correlation in unemployment in Norway and discusses and estimates two approaches for extracting the causal component: sibling differences and the use of parental unemployment occurring after the child’s outcome as control for the unobserved family heterogeneity. Confirming existing evidence, I find a substantial intergenerational correlation in unemployment. Almost half of this is due to observed family heterogeneity. The causal effect is found to be statistically insignificant by both identification strategies, but while the estimated effect is negative on the sample made for the sibling-difference approach, this finding is not replicated on a less selective sample.

The Impact of the Earned Income Tax Credit on Marriage and Divorce: Evidence from Flow Data

While considerable research focuses on the anti-poverty and labor supply effects of the Earned Income Tax Credit (EITC), relatively little is known about the program’s influence on marriage and divorce decisions. Furthermore, nearly all work in this area uses stock measures of marital status derived from survey data. In this paper, I draw upon Vital Statistics data between 1977 and 2004 to construct a transition-based measure of marriage and divorce rates. Flows into and out of marriage are advantageous because they are more likely to capture the immediate impact of policy changes. Controlling for state-level characteristics and sources of unobserved heterogeneity, I find that increases in the EITC are associated with reductions in new marriages, although the estimated effect is economically small. I find no relationship between the EITC and new divorces. These results are robust to alternative estimation strategies, data restrictions, and the inclusion of additional policy and demographic controls.     

Childhood family structure and schooling outcomes: evidence for Germany

We analyze the impact on schooling outcomes of growing up in a non-intact family in Germany. We find that this experience is associated with worse outcomes according to estimates from models that do not control for possible correlations between common unobserved determinants of family structure and educational performance. Evidence of adverse effects emerges also when endogeneity is accounted for. In such cases, however, the point estimates are typically smaller, and their confidence intervals are large enough to include zero, particularly for individuals who grew up in Western Germany.     

Do smart parents raise smart children? The intergenerational transmission of cognitive abilities

Complementing prior research on income and educational mobility, we examine the intergenerational transmission of cognitive abilities. We find that individuals’ cognitive skills are positively related to their parents’ abilities, despite controlling for educational attainment and family background. Differentiating between mothers’ and fathers’ IQ transmission, we find different effects on the cognition of sons and daughters. Cognitive skills that are based on past learning are more strongly transmitted between generations than skills that are related to innate abilities. Our findings are not compatible with a pure genetic model but rather point to the importance of parental investments for children’s cognitive outcomes.     

Death and schooling decisions over the short and long run in rural Madagascar

This paper provides strong evidence that adult mortality has a negative impact on children educational outcomes, both over the short and the long run, in rural Madagascar. The underlying longitudinal data and the difference-in-differences strategy used overcome most of the previous cross-sectional study limitations, such as failure to control for child and household pre-death characteristics and unobserved heterogeneity. This paper also pays special attention to the heterogeneity, robustness, and long-run persistence of effects. Results show that orphans are on average 10 pp less likely to attend school than their nonorphaned counterparts, this effect being even more pronounced for girls and young children from poorer households. Results on adults further show that those orphaned during childhood eventually completed less education. These findings suggest that not only do households suffering unexpected shocks resort to schooling adjustments as an immediate risk-coping strategy, but also that adversity has long-lasting effects on human capital accumulation.     

The Effect of Family Member Migration on Education and Work Among Nonmigrant Youth in Mexico

While academic and policy circles have given much attention to the assimilatory experiences of Mexican immigrants in the United States, less is known about those who stay behind—an especially unfortunate oversight given the increasing number of Mexican youth with migrant family members. Of the studies on this topic, most have sought to identify the effect that migration has on youths’ migratory and educational aspirations, often using qualitative methods in individual sending communities. The present article supplements this research in two ways: (1) in addition to assessing educational outcomes, the scope of the analysis is expanded to include nonmigrants’ interaction with another homeland institution of upward mobility: the labor market; and (2) using a large demographic data set, statistical techniques are employed to adjust for unobserved selectivity into the migrant family-member population, thus accounting for a potentially serious source of bias. The results suggest that youth in migrant-sending families are less likely to complete the educational transitions leading up to postsecondary school and have a lower probability of participating in the local economy. The results also indicate that unobserved factors play a “nonignorable” role in sorting youth into migrant and nonmigrant families.