Intergenerational transmission of human capital in Europe: evidence from SHARE

IZA Journal of European Labor Studies

Table 6 Effects of Parents’ education, IV analysis

Panel A: 2SLS
Dependent variable:	(1)	(2)	(3)	(4)	(5)
Child’s education
Parental education	0.281***	0.367***	0.498**	0.437*	0.468
	(0.057)	(0.054)	(0.254)	(0.262)	(0.334)
Female (child)		0.206***	0.224***	0.229***	0.238***
		(0.066)	(0.066)	(0.065)	(0.069)
Household size		-0.114**	-0.123***	-0.150***	-0.159**
		(0.048)	(0.044)	(0.056)	(0.069)
Observations	6,184	6,184	6,184	6,184	6,184
R ²	0.175	0.188	0.179	0.214	0.202
Mean of Dep. Var.	13.25
Std. Dev. of Dep. Var.	2.84
First stage F statistic	42.99	38.23	8.58	7.47	1.63
Panel B: First stage
Dependent variable:	(1)	(2)	(3)	(4)	(5)
Parent’s education
Compulsory education	0.632***	0.604***	0.217***	0.207***	0.104
	(0.096)	(0.098)	(0.074)	(0.076)	(0.081)
Observations	6,184	6,184	6,184	6,184	6,184
R ²	0.062	0.081	0.221	0.258	0.262
For all panels:
Socio-demographic controls	No	Yes	Yes	Yes	Yes
Cohort F.E. for parents	No	Yes	Yes	Yes	Yes
Country F.E.	No	No	Yes	Yes	Yes
Cohort F.E. for children	No	No	No	Yes	Yes
Country-specific quadratic trends	No	No	No	No	Yes

Notes: Birth cohort dummies for parents and children are in 1-year intervals. Country-specific quadratic cohort trends are computed by interacting parental birth cohort and its square with country dummies. Standard errors clustered at the parents’ country and cohort level are reported in parentheses. * Significant at 10%; ** significant at 5%; *** significant at 1%.