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Education, segregation and marital sorting : theory and an application to UK data

Author: Raquel Fernández; National Bureau of Economic Research.
Publisher: Cambridge, MA. : National Bureau of Economic Research, ©2001.
Series: Working paper series (National Bureau of Economic Research), no. 8377.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Abstract: This paper presents a model of the intergenerational transmission of education and marital sorting where parents matter both because of their household income and because parental human capital determines the expected value of a child's disutility from making an effort to become skilled. We show that an increase in segregation has potentially ambiguous effects on the fraction of individuals that become  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Raquel Fernández; National Bureau of Economic Research.
OCLC Number: 47794409
Notes: "July 2001."
Description: 1 online resource.
Series Title: Working paper series (National Bureau of Economic Research), no. 8377.
Responsibility: Raquel Fernández.

Abstract:

Abstract: This paper presents a model of the intergenerational transmission of education and marital sorting where parents matter both because of their household income and because parental human capital determines the expected value of a child's disutility from making an effort to become skilled. We show that an increase in segregation has potentially ambiguous effects on the fraction of individuals that become skilled in the steady state, and hence on marital sorting, the personal and household income distribution, and welfare. We calibrate the steady-state of our model to UK statistics and compare a version of the model to the results obtained previously for the US. We find that segregation is likely to have a smaller negative impact in the UK than in the US as a result of the fertility and education transmission process. When the relative supply of skilled individuals is endogenous, the welfare effect of increased sorting on unskilled individuals depends on the magnitude of the supply increase.

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