published in Journal of Applied Econometrics, 2019, 34 (4), 606-611
This paper studies the role of ethnicity in the intergenerational transmission of educational attainment. Relying on heteroskedasticity to identify parameters in the presence of endogenous regressors, I revisit Borjas ethnic capital hypothesis. I find evidence that the OLS estimates of the effect of ethnic capital on intergenerational transmission of education are biased upwards due to the transfer of unobserved ability. I find that while the role of parental capital has declined over time, ethnic capital has a relatively constant effect on intergenerational transmission of educational attainment. I also find that only women benefit from the quality of the ethnic environment and that the intergenerational transfer of ethnic capital is most prevalent in communities with strong ties measured with endogamy rates.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.